DBS CIO Defends NVIDIA Valuation Amid AI Growth Concerns

DBS Group's Chief Investment Officer, Hou Weifeng, has weighed in on NVIDIA's (NVDA) stock valuation, suggesting that the tech giant remains strong despite concerns about an AI-driven bubble. Speaking on October 5, 2026, Weifeng highlighted NVIDIA's current price-to-earnings (P/E) ratio of 17, which he believes is justified by the company's projected 70% earnings growth next year. He contrasted this with Cisco's valuation of 100 times earnings before the internet bubble burst, emphasizing that NVIDIA's current valuation is not overinflated.

NVIDIA's stock is currently trading at $233.95, but according to GuruFocus's GF Value™, the stock is undervalued by approximately 41.9%, with an intrinsic value estimate of $402.64. The company's GF Score™ stands at 95 out of 100, reflecting strong performance in financial strength, profitability, and growth. However, its valuation rank is relatively low at 4 out of 10, suggesting that the stock may not fully reflect its intrinsic value.

Despite the positive outlook, NVIDIA has seen significant insider selling, totaling $967.6 million over the past three months. This activity has raised questions about insider confidence in the company's future performance. Additionally, while 33 investment gurus currently hold NVIDIA stock, 20 have trimmed their holdings in recent quarters, indicating a cautious approach among institutional investors.

For investors, the current analysis presents a compelling opportunity given the substantial margin of safety indicated by the GF Value™. However, the high level of insider selling and the lower valuation rank suggest that investors should approach the stock with caution and conduct thorough research before making any decisions.