Nvidia Stock Lacks 'Oomph' Due to Upcoming AI IPOs
Former Goldman Sachs executive Michael Parekh has weighed in on Nvidia's (NVDA) recent performance, attributing the company's lackluster stock reaction to investor rotation into upcoming AI IPOs. In an exclusive interview with Stocktwits, Parekh pointed out that the market is shifting focus towards SpaceX, OpenAI, and Anthropic, which are set to list in June, September, and October respectively.
Parekh compared Nvidia's muted stock reaction to the Apollo missions, stating that the market has already priced in the company's strong growth narrative. Despite posting one of its strongest earnings reports in history, NVDA shares slipped lower even as the overall market hit new record highs.
The former Goldman Sachs partner highlighted the upcoming IPOs as a key driver of Nvidia's lackluster performance, citing the $80 billion raise planned by SpaceX and the September listing for OpenAI. Parekh emphasized that the valuation of NVDA still looks attractive relative to its growth rate, with a 26-27x earnings multiple.
Parekh also pointed out that Nvidia has a catalyst on the horizon in the form of the Vera Rubin chip rollout, which is expected to roll out in Q2 and Q3 2026. This new chip will be priced higher and more capable than Blackwell, offering upside potential for investors in the next four quarters.