'The Nvidia Way' Author Tae Kim Says Nvidia Is Increasingly Undervalued As Google TPU, Amazon Trainium Threats Remain A 'Rounding Error'
View original at finance.yahoo.com'The Nvidia Way' Author Tae Kim Says Nvidia Is Increasingly Undervalued As Google TPU, Amazon Trainium Threats Remain A 'Rounding Error' Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below…
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Apple's P/E multiple expanded from single digits to 30 times earnings after the company significantly increased share buybacks
60% confidenceNvidia's Vera CPU platform targets a brand-new $200 billion total addressable market in agentic AI workloads
60% confidenceNvidia is becoming more and more undervalued
60% confidenceNvidia has effectively abandoned the Chinese market; investors should temper expectations for China revenue
60% confidenceShare buybacks are a potential catalyst for Nvidia's P/E multiple re-rating, analogous to Apple's valuation expansion from 7x to 30x earnings after buyback programs began
60% confidenceNvidia achieved nearly 80% revenue growth on an $80 billion base in just three months
60% confidenceApple traded at seven times earnings during the large-screen iPhone era when Android was seen as a major competitive threat
60% confidenceGoogle TPU and Amazon Trainium remain a rounding error as competitive threats to Nvidia
60% confidenceNvidia stock trades at approximately 19 times forward earnings, below the S&P 500's multiple, despite growing far faster than the index's ~10% growth rate
60% confidenceNvidia plans to direct 50% of its free cash flow toward share repurchases, though the exact calculation basis (before or after supplier prepayments) is ambiguous
60% confidenceNvidia has locked up supply across memory, wafers, and optical components, leaving rivals with little room to scale
60% confidenceGoogle TPU revenues of approximately $5 billion are negligible compared to Nvidia's ~$1 trillion scale, making TPU a non-material competitive threat
60% confidenceNvidia's P/E multiple will expand significantly higher from current levels
60% confidence