Nvidia(US:NVDA) Benzinga·2025-09-12 14:47Core Viewpoint - Nvidia Corp. has significantly outperformed the Magnificent 7 group since late 2022, with a relative performance increase of over 475%, transforming from a niche player to a heavyweight in the tech landscape [1][4]. Group 1: Performance Metrics - Nvidia's stock has surged over 28% year-to-date in 2025, making it the best-performing stock among the Magnificent 7 this year [4]. - The price ratio of Nvidia compared to the aggregate Magnificent 7 increased from approximately 0.012 in September 2022 to around 0.07 by mid-2025, indicating a 475% increase in relative terms [2]. Group 2: Revenue and Market Dynamics - Data center revenue for Nvidia reached $30.8 billion in the third quarter, reflecting over 100% year-over-year growth and accounting for more than 80% of total sales [8]. - Analysts project over 50% growth in sales and profits for Nvidia in 2025, driven by hyperscaler spending from peers like Microsoft and Amazon [8]. Group 3: Competitive Landscape and Future Outlook - Nvidia's future growth is contingent on monetizing AI beyond hardware, with data center revenue expected to grow 17% sequentially [5]. - The company faces competition from Advanced Micro Devices and Intel, along with potential slowdowns in AI spending [5]. - Nvidia's market cap reached $4.31 trillion as of September, capturing about 22% of the Magnificent 7's total market cap of $19.88 trillion, a significant increase from under 1% in early 2022 [8]. Group 4: Valuation and Earnings Growth - Nvidia trades at a forward P/E of 39.37, down from 44.64 in mid-2024, which is a premium to the Magnificent 7 average, supported by an aggregate earnings growth of 27.7% for the group in the first quarter [6]. - The projected earnings power for the tech sector in 2025 is 12%, with Nvidia's trajectory potentially mirroring this growth [7].