Nvidia Slated as 'First and Only Growth Value Stock' Amid 70% Revenue Forecast
Nvidia CEO Jensen Huang calls his company the 'world's first and only growth value stock', citing its expected 70% revenue growth forecast for next year. This valuation profile is unusual, even for a megacap like Nvidia.
Huang made this statement at Goldman Sachs' Communacopia + Technology Conference on September 10. He also reiterated the company's guidance for sales growth of 70% in its next fiscal year and highlighted the projection that the world's annual AI infrastructure spending will land between $3 trillion and $4 trillion by 2030.
Nvidia is currently trading at around 23 times this year's expected earnings and roughly 12.5 times expected sales, making it seem undervalued based on traditional valuation metrics. The company grew revenue 106% year over year in the second quarter and adjusted net income surged by 118%, with a gross margin of 72% to 73% expected for fiscal 2028.