Key Highlights
- Shares of NVDA have declined 8.2% since the start of the year, closing Thursday at the lowest point since mid-December
- Forward price-to-earnings multiple has compressed to 19.7x, trading below the S&P 500’s 20.3x for the first time since 2013
- Wolfe Research maintains Outperform rating with $275 target after company unveiled Rubin Ultra “Pods” at GTC conference
- Jensen Huang’s recent comments suggest production of approximately 200 pods weekly — translating to potential monthly revenue of $120 billion based on Wolfe’s analysis
- J.P. Morgan data confirms NVDA remains the top choice for retail investor purchases
Nvidia (NVDA) finished Thursday’s trading session at $109.02, marking the stock’s weakest close since mid-December, as artificial intelligence stocks experience continued selling pressure across the sector.
Friday’s premarket session showed NVDA gaining 0.3% following Thursday’s losses.
Year-to-date performance heading into Friday reveals an 8.2% decline for the chipmaker.
The recent price action has compressed Nvidia’s valuation to an uncommon level relative to the broader equity market. According to FactSet data, the company currently trades at a forward price-to-earnings multiple of 19.7 times. The S&P 500 index carries a forward P/E of 20.3 times, making the chipmaker’s shares more attractively valued than the benchmark.
This represents a meaningful reversal in relative valuation. Nvidia maintained a premium valuation versus the S&P 500 on a forward P/E basis for thirteen consecutive years — spanning from February 2013 through late February 2025, according to Dow Jones Market Data.
The valuation relationship changed on February 28, when geopolitical tensions involving Iran pressured market sentiment. Nvidia’s forward multiple has alternated between premium and discount levels relative to the index since that date.
Strong Retail Investor Interest Persists
The price decline has done little to dampen enthusiasm from individual investors. NVDA held the position as the most-purchased individual equity among retail traders during the week ending March 25, based on J.P. Morgan’s retail trading analysis.
Barron’s Roundtable panelists expressed uniformly favorable views on the stock.
Broadcom (AVGO) traded down 0.9% in Friday’s premarket session, while Advanced Micro Devices (AMD) also declined 0.9%.
Analyst Firm Highlights Rubin Ultra Pod Revenue Potential
Wolfe Research reaffirmed its Outperform rating and $275 price objective on NVDA this week, pointing to the company’s GTC conference unveiling of Rubin Ultra “Pods” — specialized reference designs optimized for agentic AI datacenter deployments.
Wolfe’s analysis estimates approximately $150 million worth of Nvidia components per pod. VR200 racks account for roughly two-thirds of that content value, with Groq processors contributing the most substantial portion of additional revenue.
The research firm highlighted that newly introduced components including CPU, storage, and Groq technologies could boost revenue by 50% beyond VR compute racks alone. Groq LPX racks contribute an additional 25% revenue opportunity compared to the VR200 baseline, delivering low-latency inference capabilities for premium service offerings.
CEO Jensen Huang mentioned during a Lex Fridman podcast interview that the company might need to manufacture “about 200 of these per week, just for context.” Wolfe Research translated those figures: 200 pods produced weekly equals approximately $120 billion in monthly revenue potential — a substantial figure when compared to current Wall Street consensus estimates of $482 billion for full-year 2027.
Rosenblatt Securities maintained its Buy rating with a $325 price target, highlighting visibility into more than $1 trillion in orders for Blackwell and Rubin platforms extending through 2027. Cantor Fitzgerald continued its Overweight rating at $300 following Nvidia’s GTC presentation. InvestingPro reports that 31 analysts have increased their earnings projections for the upcoming period, with price targets extending as high as $380.
