Nvidia: Just a 3% Premium for the Most Crucial AI Company The J Thesis 1. 32K Followers Comments (11) Summary Valuation remains reasonable: Nvidia is trading at approximately 24 times forward earnings, only about 3% above the S&P 500 average, despite significantly stronger revenue, EPS growth, and margins. Fundamentals continue to be outstanding: With 12 consecutive earnings beats, around 65% year-over-year data center growth, and roughly 74% gross margins, Nvidia demonstrates dominant performance. Market concentration is not yet at its peak: The heavy focus on the Magnificent 7 indicates the bull market has not yet broadened, leaving potential for further gains if a recession is avoided. Long-term outlook remains solid: Nvidia’s leadership in AI, combined with underappreciated growth in gaming, supports an ongoing bullish case. My rating: Strong Buy. I don’t believe the stock market has peaked—especially when the leading company at the forefront of the AI revolution trades at just a modest premium over the broader market. About the Author 1. 32K Followers Dear Reader, I am a Senior Derivatives Expert with over 10 years in Asset Management, specializing in equity research, macroeconomics, and risk-managed portfolio construction. My experience spans institutional and private client management, focusing primarily on equities and derivatives. Like many, I am passionate about the stock market, particularly how macro trends affect asset prices and investor behavior. I closely monitor EU and US central bank policies, sector rotations, and sentiment shifts to develop actionable investment strategies. I hold a BA in Financial Economics and an MA in Financial Markets. Over the past decade, I have successfully navigated varying market conditions, which I consider my PhD. One of my key goals in writing on Seeking Alpha is to share insights, exchange ideas with fellow investors, and improve continuously. I believe investing should be accessible, inspiring, and empowering. While this may sound cliché, building confidence in long-term investing is invaluable—so let’s support each other. The analyses and opinions I share are for informational purposes only and do not constitute financial advice.

Please conduct your own research before making any investment decisions. Thank you, and have a wonderful day! Best regards Analyst Disclosure: I/we hold a beneficial long position in NVDA shares through ownership, options, or derivatives. This article expresses my own views and I receive no compensation aside from Seeking Alpha. I have no business relationships with any companies mentioned. Seeking Alpha Disclosure: Past performance does not guarantee future results. No investment advice or recommendations are provided regarding suitability for any investor. Opinions expressed are those of the author and may not represent Seeking Alpha’s views. Seeking Alpha does not function as a licensed securities dealer, broker, US investment adviser, or investment bank. Its analysts include both professional and individual investors who might not be certified or licensed. Comments (11)