Nvidia will sustain an above average multiple next year, says Neuberger Berman's Daniel Flax

Core Viewpoint - The market is currently expecting revenue growth rates for Nvidia to decelerate, leading to a recent decline in the stock's multiple, which is expected to remain elevated over the next 12 to 18 months [3][4][5]. Financial Performance Expectations - Nvidia's trailing price-to-earnings (PE) multiple is over 30 times, indicating an elevated valuation [4]. - The company is capacity constrained, with expectations of 60% to 80% growth in revenue for upcoming quarters, although this growth is anticipated to moderate over time [7][8]. - The data center revenue is projected to exceed $50 billion, which is a critical metric for the company's performance [10]. Product and Market Positioning - Nvidia is well-positioned due to its execution on the product roadmap, including upcoming releases like Blackwell and Reuben, which are expected to enhance its competitive positioning [5][6]. - The company is expected to maintain strong earnings per share growth, with a positive outlook for the January quarter [11].