NVDA $57B Quarterly Revenue: Debate on Business Value vs Price Inflation

The analysis is based on a Reddit discussion [1] about Nvidia’s (NVDA) recent $57B quarterly revenue report (up 62% YoY). The original poster (OP) questions if investing in NVDA now reflects confidence in its business fundamentals or is driven by inflated prices due to AI hype.

1. Bullish Argument
   : Forward P/E of ~24x is reasonable, with no expected slowdown in growth (score:16).
2. Bearish Argument
   : Growing competition from AMD, Intel, Alphabet, and Chinese players will shrink NVDA’s moat; high valuations (50x PE) are risky (score:8).
3. Neutral Observations
   :
   • Finance communities often change narratives based on recent price movements (irrational behavior, score:13).
   • NVDA’s fiscal year timing (FY2026 vs FY2027) causes confusion in forward P/E calculations (score:4).

• Valuation
  : The discussion mentions forward P/E of 24x (FY2026) or 26x (FY2027), indicating分歧 over which fiscal year to use.
• Competition Risk
  : Competitors like AMD, Intel, and Alphabet are seen as threats to NVDA’s market dominance, which could impact future growth.
• Narrative Volatility
  : The debate highlights how investor sentiment shifts with price movements, leading to inconsistent valuation arguments.

Investors should consider both the potential for continued growth (supported by reasonable forward P/E) and the risks of competition and hype-driven pricing. The confusion over fiscal year timing underscores the need for careful analysis of valuation metrics.

Note: This analysis does not constitute investment advice; it reflects the discussion points from the Reddit thread.