Nvidia Lags Behind Peers Despite Strong Revenue Growth

Nvidia's stock price is near its 52-week high at $230.36, just 2.6% below it, while four of its biggest AI chip peers are significantly discounted.

Advanced Micro Devices (AMD), Micron Technology (MU), Broadcom (AVGO), and Marvell Technology (MRVL) closed the week 18-32% below their respective highs.

The five companies, including Nvidia, are expected to benefit from a wave of data center spending, with capital expenditures by hyperscalers predicted to reach $1.3 trillion in 2027.

Nvidia's revenue grew 106% year-over-year to $96.2 billion in the fiscal second quarter of 2027, driven by strong demand for its AI chips and GPUs.

While AMD and Micron also reported excellent results, their stocks are priced at a premium, with AMD trading at around 31 times next year's estimated earnings and Micron at 6.5 times.