Nvidia's valuation gives too little credit to its expected long-term earnings growth. Its forward P/E-to-growth ratio is 0.28, the lowest since late 2023; the bullish read depends on those growth expectations proving accurate. x.com  x.com 

Nvidia's rising revenue alongside a much lower P/E is getting hard to ignore. Its chart shows quarterly revenue above $80 billion in Q2 2026 while the P/E is around 30x, down from much higher multiples in prior years. x.com 

AI suppliers' demand may not justify today's investment. Roughly $3 trillion in revenue absent last year is needed to support the spending, yet GDP growth is weak and many companies may be seeing only incremental gains. If the estimate that Anthropic uses two-thirds of its compute for training is right, it could triple inference supply. The most likely outcome for many companies, roughly half the S&P 500, is slowing growth, compressed margins and multiples; when the bubble ends is uncertain. … Show more

Nvidia looks interesting again because rising earnings estimates have not been reflected in its valuation. FY28 EPS estimates rose about 25% in 60 days while shares stayed roughly flat; it trades below 14 times FY28 earnings with a mid-single-digit free-cash-flow yield. Exponential change is hard to grasp, and it is hard to see Nvidia not winning if the US does, though there is little capital to absorb market wobbles. x.com  x.com 

Rapid revenue growth against forward valuations makes Nvidia and Micron additional calculated risks after the selloff, alongside Meta, Broadcom, IREN, Vistra, Nokia and Oracle. Nvidia grew revenue 106% and guides Q3 to $108B, plus or minus 2%, at 17.5x forward earnings; Micron grew revenue 379% to $54.2B, guides $61.5B next quarter and trades at 5x. The other six retain their growth, contracted-demand or customer-order cases. x.com 

Financing risk makes AI-linked growth stocks unattractive to add here. Much of the money reaching suppliers such as Nvidia and Micron is financed, so harder funding would limit spending on chips, compute and memory. The buildout is not over, but stock prices could remain suppressed until it slows. A significant drawdown would make adding appealing; for many high-beta names with weak fundamentals and balance sheets, the highs look to be in. x.com 

Broadcom's custom AI chips and networking could drive earnings beyond what its valuation implies over 2-3 years. It is the favorite semiconductor opportunity now, preferred over NVIDIA without replacing it. AI semiconductor revenue is projected at about $58B in FY2026, $115B in FY2027 and potentially $230B in FY2028. At about 17x FY2027 consensus adjusted earnings, risk/reward is compelling if growth materializes; customer commitments add visibility, but delays and financing remain risks. x.com  … Show more

AI skepticism leaves Nvidia, Broadcom and Micron looking cheap on forward earnings. Their forward P/E ratios are 14, 18 and 5, respectively; the market may eventually stop doubting AI. x.com 

Nvidia's AI profits are real, but its compute demand depends heavily on fragile venture funding. Per Chamath, 1% of firms account for 90% of AI spending, and 72 cents of each dollar comes from unprofitable VC-backed firms. Venture money passes through startups to Nvidia and cloud suppliers; if the next raises fail, concentrated orders could contract together. x.com  x.com  x.com 

Fresh funding for AI expansion supports a continued bid for AI stocks as compute spending shows no sign of slowing. Meta committed to $95B in shareholder dilution for AI, Anthropic is set to have $200B in cash in a couple of weeks, and SpaceX got a $40B Apollo loan solely to buy more Nvidia GPUs. The Anthropic IPO might even be a positive catalyst rather than the negative one many fear. x.com