We recently published Top 10 Non-AI Stocks Redditors are Buying Ahead of Potential Bubble Burst. Novo Nordisk A/S (NYSE:NVO) is one of the top non-AI stocks Redditors are buying.
Novo Nordisk A/S (NYSE:NVO) has long been a favorite stock of Redditors, and its popularity recently increased on the social media platform as investors recommended it as a non-AI play.
However, many investors are now questioning the company’s fundamentals. Recently, the company cut its full-year guidance, citing lower-than-expected sales of Wegovy and Ozempic.
Some investors point to the lower P/E of the stock. However, a Redditor recently countered this argument during a discussion:
“About valuation, the current forward P/E is 13, but that number only looks cheap because earnings are at an unsustainably high margin peak (50 % EBIT). If you normalize margins to even 25-30 %, that forward P/E doubles instantly.”
Vltava Fund stated the following regarding Novo Nordisk A/S (NYSE:NVO) in its third quarter 2025 investor letter:
“Novo Nordisk A/S (NYSE:NVO) probably needs no long introduction. It is one of Europe’s largest companies and a global leader in the treatment of two major lifestyle diseases – diabetes and obesity. The company has grown historically through the development and production of insulin and has held a dominant share of the global market in that group of products for decades. In recent years, obesity treatment has become its key growth segment. Its best-known product is Wegovy, which has proven to be highly effective in weight reduction. A smaller part of the business consists of drugs for rare diseases, particularly in the areas of hemophilia and growth hormone therapy. Novo Nordisk has highly integrated production, from molecule development to fully automated filling lines for injection pens, and global distribution to more than 170 countries, with a focus on the United States, Europe, and a rapidly growing share in Asia. Its biggest competitor is Eli Lilly, and these two companies now effectively form a duopoly in modern treatment of diabetes and obesity. Barriers to entry into the industry are extremely high, due to long development times, regulation, and enormous investments in production and distribution.
We have been following Novo Nordisk through the entire existence of the Vltava Fund, which means for more than 21 years. We have never owned its shares, however, either because we found them too expensive or had other more attractive opportunities available to us. During 2023–2024, Novo Nordisk definitively joined the ranks of global leaders in a new era of medicine. The success of its Ozempic and Wegovy medications has shown that obesity treatment is not just a niche segment, but a huge growth opportunity with direct impact on the health of millions of people. Demand for these drugs far exceeded supply, and the company invested heavily in expanding production. The market began to appreciate that Novo Nordisk had moved beyond traditional diabetology and become synonymous with innovation and long-term growth in an additional market segment. This narrative was increasingly reflected in the share price. From DKK 400 in the autumn of 2022, the price gradually climbed to beyond DKK 1,000 in the summer of 2024, at which time the stock was trading at roughly 45 times this year’s expected earnings. This price implicitly included very optimistic assumptions about future profitability…” (Click here to read the full text)
While we acknowledge the risk and potential of NVO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVO and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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