Nvidia Trades Like an Oil Stock While Leveraging Valuation for Massive Buyback
Yahoo Finance ·
Nvidia is closing in on a record high while maintaining a surprisingly modest forward price-to-earnings multiple, trading even lower than the S&P 500. Capitalizing on this low valuation, CEO Jensen Huang and the board executed a massive 150 billion dollar stock buyback program, the largest in US corporate history. DataTrek co-founder Nicholas Colas compared Nvidia to ExxonMobil, noting that both act as underrated linchpins in scarcity-driven investment sectors—data and oil, respectively. While Exxon trades at 12.9 times future earnings and Nvidia at 18.7 times, both sit below the broader market multiple. However, Nvidia's growth trajectory sets it apart entirely. Analysts project Nvidia's revenues to dwarf traditional energy giants, with expected sales growth driven by unrelenting AI infrastructure investments and robust supply-demand imbalances akin to global energy markets.
AI 시장 분석
Despite exploding AI chip demand and overwhelming earnings growth, NVIDIA (NVDA) recorded a forward P/E ratio of 18.7x, lower than the S&P 500 index, placing it at the center of undervaluation discussions. Capitalizing on this undervalued phase, the company launched a historic $150 billion share buyback program to support its stock price. Wall Street analysts expect fiscal 2028 revenue to reach $70 billion, a figure that overwhelms traditional energy giant ExxonMobil (XOM). Investors are re-evaluating valuation attractiveness by focusing on the similarities in supply shortages between the AI data and crude oil markets, which share a scarcity theme.
상승 영향
- Semiconductors — As NVIDIA announced a historic $150 billion share buyback and presented a $70 billion revenue outlook for 2028, the undervaluation attractiveness and strong shareholder return policy of the leading AI semiconductor company are highlighted, strengthening upward stock momentum.
- AI — Amid a scarcity economy where data is likened to new oil, NVIDIA, the core of AI infrastructure building, trades at a P/E of 18.7x, lower than the S&P 500 average, proving overwhelming growth and cash generation, which will improve investment sentiment across the related ecosystem.
DYAX 전담 분석
NVIDIA's low P/E multiple defensively shows that the market holds excessive doubts about the sustainability of AI demand compared to its explosive profit growth rate. However, the $150 billion share buyback and the $70 billion revenue forecast for 2028 act as powerful momentum solidly supporting the downside of the stock price.
In the future bullish scenario, premium recovery could proceed through accelerated AI infrastructure building and stock prices could break all-time highs, while in the bearish scenario, supply chain bottlenecks or concerns over AI return on investment (ROI) slowdown could lead to multiple pressure. Key monitoring indicators include guidance achievement in earnings announcements and the execution speed of share buybacks.
AI가 생성한 분석으로 투자 자문이 아닙니다.
DYAX Investor Sentiment
Bullish (Long) 40% · Bearish (Short) 60%
264 participants
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