Analyst Says NVIDIA (NVDA) Valuation Still ‘Reasonable’ – Here’s Why

Group 1: Company Valuation and Market Position - Analysts consider NVIDIA's valuation to be "reasonable," trading at 26 times forward earnings, which is lower than competitors like Costco and Walmart at around 50 times [1] - NVIDIA holds approximately 90% of the GPU market, which is projected to reach $3 to $4 trillion by 2030 [2] - The company is expected to benefit from significant data center capital expenditures, projected to hit $6.7 trillion [2] Group 2: Financial Performance and Future Outlook - NVIDIA reported solid first-quarter results, despite taking a write-down on China-specific datacenter products due to new export restrictions [3] - Demand outside of China remains strong, with NVIDIA outpacing expectations and competing products [3] - There are concerns about potential overcapacity in the AI datacenter build, which may affect short-to-medium-term performance [3]