Nvidia's Post-Sell-Off Gains Trail S&P 500, But Valuation Holds

Nvidia CEO Jensen Huang told investors in Seoul on June 8 to "buy at a discount" during a tech sell-off, but the stock has since risen only 2.2%, trailing the S&P 500's 3.1% gain as of Aug. 21. At the time, Nvidia traded at 23.5 times fiscal 2027 earnings and 16.6 times fiscal 2028 earnings, with revenue up 85% year over year to $81.6 billion in its latest quarter. Now, the stock trades at similar multiples, as analysts have raised earnings estimates in parallel with the share price. Nvidia generated $48.6 billion in free cash flow last quarter, and its largest customers are expected to spend $730 billion on AI infrastructure in 2026. The company reports fiscal second-quarter results on Aug. 26, with revenue guidance of $89.2 billion to $92.8 billion.