Analyst Says NVIDIA (NVDA) Price/Sales Ratio is a ‘Big Number’ – ‘We Shall See’

Core Viewpoint - NVIDIA Corporation (NASDAQ: NVDA) is highlighted as a leading AI and non-tech stock, with expectations of $500 billion in GPU sales from its upcoming Blackwell generation and next year's Rubin chips [1]. Group 1: Financial Performance and Expectations - NVIDIA anticipates $500 billion in GPU sales from the Blackwell generation and Rubin chips combined [1]. - The company's price-to-sales ratio is approaching 19 times revenue, which is considered high for a mature company [2]. - Analysts express concerns about NVIDIA's cyclical business model, which complicates the forecasting of future earnings growth [3]. Group 2: Investment Strategy and Market Sentiment - Polen Focus Growth Strategy initiated positions in NVIDIA and Broadcom after a 2.5-year hiatus, citing previous difficulties in predicting earnings due to cyclical downturns [3]. - The firm acknowledges the potential for NVIDIA to grow into its high revenue multiple, reflecting a shift in market sentiment towards a new paradigm [2].