Trading was down 0.78% on June 11, 2025, $142.83—close previous close: $143.96; market cap ≈ $3.49 trillion.
P/E Ratios:
- Trailing P/E: ~46.0
- Forward P/E: ~25.0 (tradingview. com, finviz. com)
These high valuations indicate that investors are confident in NVIDIA’s future earnings.
Growth & Profitability:
- YoY Sales +86%(TTM), YoY EPS +81%
- Gross margin: 70%, operating margin: 58%
Profit margin: ~52%—indicating robust operating efficiency.
Balance sheet & dividend:
- Debt to equity ~ 0.12 – very low leverage
- Highly liquid with a quick ratio of 3.0 and a current ratio of 3.4
- Tiny dividend: $0.04/year (0.03% yield).
Price action & volatility:
- Beta ~2.1 -very sensitive to market moves
- ATR ~ 4,3; monthly: +16–17%, quarterly +23–24%
- RSI ~67—getting too frequent overbought.
Analyst sentiment:
- Consensus: Strong Buy (~1.38 rating), 54 analysts
- Target price target target target averages: low $100, avg $161.6, high $235.9
What Does This Tell Us?
1. Explosive Growth Mode
NVDA’s YoY revenue/Sales growth of 86% and EPS gains of 81% affirm the stock’s leadership in the AI/data center explosion (finviz. com).
It’s the Blackwell chip and data center momentum play that are the key drivers — data center revenues increased by an astounding ~76% YoY in the last quarter.
2. A Premium for Premium Valuations
Even now, assuming things go according to Apple’s plan and nobody does anything to get in its way, the most obvious threat is valuation.
A 46 trailing P/E and a forward P/E of 25 is what the market is pricing in for a continued accelerating growth. With a PEG of ~1.5 times, valuations are high but mitigated by a long growth runway. Analysts anticipate around 30% EPS growth in the coming 5 years.
3. Bullish Tone, but Watch Your Step Ahead
On a technical level, NVIDIA’s stock is indicating optimistic momentum.
That’s not just hopes or dreams, but the interpretation of a couple of bullish technical patterns, MACD and stochastic, as well as the networking of the Golden Cross in EMAs, all of which suggests whatever pullback to buy the maker of Model 3s before its July 25th earnings report might still allow you to gain a few dollars; you can see it returning to $200 as we close out the days of summer
But with an RSI around 70, it appears to be getting into overbought territory.
4. Geopolitics & Exposure to China
Growth of Int’l Revenue: China (incl. Hong Kong) contributed for 12.5% ($5.5B) of revenue, Taiwan for 16.3% ($7.2B), whereas China slightly fell short of Street estimates.
Global factory builds (~100 AI “factories”) lead mega-deals in Saudi Arabia (with ARM) and UAE as proof of expansion beyond China. Nevertheless, geopolitical uncertainties and U.S.–China tensions are tail risks.
5. Analyst Outlook
Firing on all cylinders: Bokeh Capital’s Kimberly Forrest compares NVDA to a “Porsche”—”It’s the top end and there’s not really any direct competitor”.
Valuation still appealing: Newton Investment’s John Porter emphasizes AI is only in its infancy and NVIDIA is a great enabler.
There was some short-term profit-taking following the big 2024 run, but the long-term secular trends remain in place.
Key Risks & Watchpoints
1. Macro/AI slowdown: A hyperscaler capex pause could moderate near-term momentum (finviz. com).
2. China restrictions: Export controls and decreased Chinese demand are possible headwinds (offset in part by growth elsewhere).
3. Market volatility: With a beta of >2, NVDA can do the the monkey both long and short—rotation risk in or out of AI plays is a real thing,and all else being equal, typically you do not want to see 14% of the float out there short (unless you ARE short NVDA, of course).
4. Overvaluation concern: Downside risk remains with growth deceleration; the low analyst target of $100 (~30% downside) reflects this (finviz. com).
Tactical & Strategic Take Aways
Short‑term view:
What a bullish trio! Technical set-up, strong earnings momentum and positive analyst sentiment. ETFs and traders may begin playing breakout trades to $160–200. But be on the lookout for profit-taking in the near term, especially ahead of earnings.
Long‑term view:
NVIDIA continues to be in the driver’s seat of the AI/data-center revolution. And it isn’t just hardware (Omniverse, DRIVE, Jetson, networking) — Nvidia’s proprietary GPU architecture and expanding ecosystem (“Lock-in”) creates a soft-lock with software that is difficult for the competition to match (finviz. com).
Valuation management:
NVDA investors should be cognizant of premium valuations. Using techniques such as pioneering dollar-cost averaging, or even just running scaled entries, could be a way to manage the exposure.
Keep an eye on dips to the low-$120s or $130s — levels that would correspond to a forward P/E around 20.
On the horizon: Q2 Earnings (Late August)
Next earnings approximately August 27, 2025 (tradingview. com). Its upcoming quarterly results are seminal: beats likely send shares higher by another 20–50% (some think to a breakout toward $200 and higher) while a hiccup in guidance or softness in demand could set off a pullback.
Final Word
NVIDIA is the gold standard of AI-exposed semiconductor stocks—growth is secular and robust, profit margins are rock-solid and the scale of innovation unrivaled. Finviz again corroborates the market’s view: NVDA is expensive — but for now, by all appearances, it is expensive for good reason.
Traders could play the momentum as the technical set-up appears strong, particularly ahead of earnings. NVDA Long-term investors need to accept the dominance, but need to manage entry risk and be aware about macro, valuation and geo-political rotation.
In a nutshell: **NVIDIA is A-Okay, just play it smart on when and how much you buy.
