PubMatic Is Getting an Nvidia Boost. Should You Buy PUBM Stock Now?

Core Insights - PubMatic has announced a multi-year integration of Nvidia technology to enhance its infrastructure, enabling AI processing to be five times faster than traditional systems [1] - Following this announcement, PubMatic's stock rose 7.5% intraday on October 8 [1] Company Overview - PubMatic is a technology company based in Redwood City, California, founded in 2006, that provides a cloud-based platform for digital publishers and advertisers [1][2] - The company processes billions of ad impressions daily and supports various digital channels, including desktop, mobile, video, and connected TV [2] - PubMatic's market capitalization is currently $363.5 million [2] Financial Performance - In Q2 of fiscal 2025, PubMatic reported a revenue increase of 6% year-over-year to $71.1 million [5] - The company's CTV revenue grew more than 50% year-over-year, while omnichannel video revenue, including CTV, grew 34% year-over-year, accounting for 41% of total revenue [5] - PubMatic's net dollar-based retention rate was 102% for the trailing 12 months ended June 30 [5] Stock Performance - PUBM stock has faced challenges, declining 45% over the past 52 weeks and 43% year-to-date [3] - The stock reached a 52-week low of $7.01 in August but has since increased by 19% from that level [3] - Over the past five days, PUBM stock is up 1.5% [3] Valuation Metrics - As of the latest data, PubMatic has a price-to-sales ratio of 1.25 times, which is slightly lower than the industry average [4]