Tom Lee Says Nvidia (NVDA) Valuation Still Attractive, It’s Wrong to Believe We Are Near The End of AI Rally

Core Viewpoint - NVIDIA Corporation (NASDAQ:NVDA) is positioned as a leading player in the AI and GPU market, with significant growth potential driven by the ongoing AI infrastructure build-out and increasing demand for advanced computing solutions [1][4][5]. Company Insights - NVIDIA holds approximately 90% of the GPU market share, which is projected to grow to $3 to $4 trillion by 2030 [3]. - The company's next-generation GPU series, Rubin, is expected to launch in 2026, enhancing its competitive edge in AI computing [3]. - NVIDIA's CUDA platform has become the industry standard for AI programming, further solidifying its market position [3]. Market Dynamics - The AI market is still in the early stages of a multi-year investment cycle, indicating substantial future growth opportunities for NVIDIA [5]. - Demand for NVIDIA's next-generation Blackwell platform is strong, driven by the complexity of large language models and reasoning-based applications, which require significantly more compute power [4]. Valuation Perspective - Tom Lee from Fundstrat highlighted that NVIDIA is trading at around 27 times forward earnings, which is lower than the P/E ratios of Walmart and Costco, suggesting that the stock may still have room for growth [2].