Nvidia's revenue continues to climb rapidly, with Bloomberg Intelligence projecting at least 42% revenue growth over the next four quarters versus roughly 10% for the Nasdaq 100. Earnings fell short of some expectations but confirmed sustained sales momentum. Analysts have raised earnings estimates, pushing Nvidia's forward price-to-earnings multiple down to under 33 from 35 three weeks earlier, while the Nasdaq 100 trades around 27. Thirty companies in the Nasdaq 100 have higher valuations than Nvidia. Nvidia's market value is about $4.4 trillion, and shares fell as much as 3.4% in Friday morning trading.
While the chipmaker's earnings this week weren't the blowout Wall Street was hoping for, they did show that its sales are still climbing faster than those by the technology universe more broadly. Nvidia is expected to post revenue growth of at least 42% over the next four quarters, compared with an average of roughly 10% for the tech-heavy Nasdaq 100 Index, according to data compiled by Bloomberg Intelligence.
The stock is actually getting cheaper as analysts raise their earnings estimates. Nvidia traded at less than 33 times projected profits as of Thursday's close, down from 35 three weeks ago. The Nasdaq 100 was priced at 27 times, and there were 30 companies in the 100-member index with higher valuations than Nvidia, including Starbucks Corp. and Netflix Inc. Nvidia shares shed as much as 3.4% in Friday morning trading.
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