Analyst Explains Why NVIDIA (NVDA) Valuation is Attractive

John Porter, Newton Investment Management chief investment officer, recently explained during an interview with CNBC that NVIDIA Corporation (NASDAQ:NVDA) still has growth potential despite “stellar” performance and highlighted the stock’s valuation.

“Nvidia, despite what has been stellar performance over the last 3 or four years, you know, it’s still only trading at sub 30 times next 12 months earnings—earnings that are, you know, understated because of the some of the the challenges with their ability to sell globally, as highlighted in in your prior segment. And, you know, the AI trade is only beginning—the implementation, the utilization of AI. I see it in my own company, BNY. We are on on our front foot, leading the way in in incredibly innovative ways in terms of deploying AI, and it’s only starting to impact us in positive ways. So I think the the benefits of AI are going to the um unprecedented, that, you know, it’s all still in front of us, and and Nvidia is is a is the key supplier of critical chip componentry to to to that that underlies that trend.”

A close-up of a colorful high-end graphics card being plugged in to a gaming computer.

RiverPark Large Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) was our top detractor in the quarter as investors took profits following its extraordinary performance in 2024. Despite reporting strong quarterly results, the stock pulled back amid concerns that AI-related demand may be plateauing near-term and that capital expenditures by hyperscalers could moderate. Additionally, investor anxiety rose following the announcement of sweeping new tariffs, which sparked fears of supply chain disruptions and rising input costs across the semiconductor industry. We continue to believe that NVIDIA remains one of the most strategically important companies in global computing, with best-in class GPUs, a dominant software ecosystem, and expanding opportunities in inference, networking, and edge AI. The long-term secular trend toward accelerated computing remains intact, and we believe NVDA is well-positioned to be a key beneficiary.”

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Disclosure: None. This article is originally published at Insider Monkey.