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

Nvidia's Market Position & Growth Expectations - The market anticipates Nvidia's revenue growth rates to decelerate, leading to a recent decrease in the stock's multiple, expected to remain around current levels for the next 12-18 months [3] - The market is evaluating Nvidia's competitive positioning and future prospects following the current period [5] - Nvidia is expected to remain very well-positioned, driven by execution on its product roadmap with Blackwell and the developer community/software [5][6] - Newberger Burman expects Nvidia to sustain an above-market multiple [3] Financial Performance & Expectations - Expectations for the upcoming quarter's report are very strong, with potential for 60-80% growth, but revenue growth is expected to moderate over time due to capacity constraints [7] - Revenue growth has been in triple digits, but is expected to moderate, with potential supply constraints impacting quarters [7][8] - The market is looking for 40-60% growth over the next several quarters, which, if sustained, is expected to drive earnings, free cash flow, and the stock forward [9] - Newberger Burman anticipates data center revenue exceeding $50 billion, which is considered the most important number [10] - Newberger Burman expects earnings per share to beat expectations and anticipates very healthy growth in the January quarter [11] Valuation - Trailing price-to-earnings (PE) multiple is over 30 [4] - The multiple is considered elevated but has come down [4][6]