Nvidia's Stock Won't Be Overvalued by 2028: Expert

Nvidia's stock may seem overvalued after its recent earnings and bullish forecast sent it up 8.7%, but according to one expert, that's not the case.

The company's valuation multiple is near multiyear lows, while its earnings and AI dominance are still compounding at rates that make today's price look reasonable.

Looking at Nvidia's basic math, we can see that it trades around a mid-30s trailing price-to-earnings ratio and a low-20s forward price-to-earnings ratio, levels that are actually below its 10-year average.

The company generated over $250 billion in total revenue last year, with data center GPUs responsible for the majority of the business. Independent estimates put data center and AI accelerator revenue at $190-plus billion, representing around 90% of total sales.