Nvidia's valuation nears S&P 500 levels ahead of earnings

Nvidia's forward price-to-earnings ratio has fallen to 24 times, near the S&P 500's 21 times, despite rapid growth, raising questions about its valuation ahead of earnings Wednesday. JPMorgan analyst Harlan Sur noted strong revenue guidance has not boosted the stock, which typically declines 3% to 5% after earnings. He said a rerating requires Nvidia to address competition, infrastructure deals, and China sales. Nvidia's cheap valuation reflects concerns about cyclical risks like cloud spending digestion and trade policies. Sur sees potential upside from H200 GPU shipments to China, estimated at $3 billion per 100,000 units.