Nvidia's valuation described as absurdly cheap signals potential upside for AI investors.
Context
What happened: A Seeking Alpha analyst rates Nvidia Corporation a Strong Buy, citing robust EPS growth, a next-gen Vera Rubin chip ramp, and an undemanding forward P/E.
Key numbers: 14.5x FY28 forward P/E; Q2 FY27 revenue growth 106% YoY; EPS growth 120%; data center 92.5% of total sales; Vera Rubin expected to reach 20% of data center revenue in
Why it matters: The analyst sees the valuation as cheap given growth and the Vera Rubin ramp, while flagging risks including gross margin contraction, working capital build, and exposure to large AI customers and internal financing arrangements.