Analyst on Nvidia (NVDA): ‘That’s a Multiple I’m Comfortable With’

NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 Stocks to Watch in July as AI Enthusiasm Returns.

Tim Seymour, Seymour Asset Management CIO, said in a recent program on CNBC that major tech companies are cutting back on AI spending plans and investors seem to be looking past market uncertainty. He also praised Nvidia’s leadership and commented on the stock’s valuation.

“I do think you have a dynamic where it’s really a combination of dynamics, and it’s interesting to see that this is—you really haven’t heard any of the hyperscalers push back on their commitment to AI and AI infrastructure. What you’re seeing—you noted—I mean the move in ARM, the move in AI infrastructure, and then even moves in companies like Oracle, and the fact that Oracle’s even held on to some of these gains tells you where I think the market is. And AMD—the broadening of the chip trade. So it doesn’t mean that there isn’t some FOMO in here, it doesn’t mean that multiples are challenged, but I look at Nvidia and that leadership looks great to me, and that’s a multiple that I’m comfortable with.”

Despite a $4.5 billion inventory charge related to US import restrictions for China, the company expects gross margins to reach the mid-70% range by late this year due to scaling Blackwell production.

NVDA bulls believe the company can easily offset losses related to China amid new products and market diversification. Saudi Arabia’s Humain plans to buy more than 200,000 AI GPUs from Nvidia, potentially generating $15 billion in sales. The UAE reportedly has an agreement for up to 500,000 GPUs. Even without China’s involvement for now, Nvidia said nearly 100 AI factories are under construction. These factories have hyperscalers deploying 1,000 GB200 NVL72 racks weekly, each with 72,000 Blackwell GPUs.

Columbia Threadneedle Global Technology Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter:

“However, the quarter was not without its challenges, starting with the fund holding NVIDIA Corporation (NASDAQ:NVDA). The threat of a new Chinese competitor upended the U.S. AI technology complex as fears rose that the lower-cost alternative that performed as well or better than most U.S. models could disrupt the market and reduce the need for AI semiconductors. NVIDIA reported quarterly results that showed growth – but still a bit subdued as compared with sky-high investor expectations. Profit margins were weak during the quarter as the company ramped up its new Blackwell chip architecture, which at $11 billion in quarterly revenue was the strongest product launch in company history.”

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