David Prince
US Equity/Options Fund Manager, Mentor at T3 Live
Dell is cheap, and its higher P/E than Nvidia's is not irrational. P/E is not always the right valuation tool, and market cap matters: Dell is about $300 billion versus Nvidia's $5 trillion, and the law of large numbers is real. Dell was not widely owned and nobody thought it could raise guidance 40% again, while Nvidia's expectations have been through the roof for years. 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
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
Dell looks overvalued, trading about seven turns above its historical multiple range and at a premium to many AI semiconductor bottleneck names despite not providing a bottleneck solution. Michael Dell spiking the ball on the latest quarter might mark the top. x.com
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
Nvidia looks anomalously cheap among large semiconductor companies. It has the biggest market cap, the fastest growth and the cheapest valuation, and the market doesn't know what to do with that. x.com
Dell is heavily overearning heading into a two-sigma melt-up, leaving the stock exposed to a reversal. x.com
Low forward earnings multiples across eleven stocks cannot persist indefinitely. Nvidia trades near 17.5x, its lowest in over a decade; Oracle near 15x, its lowest in six years. Uber is at 17x, Broadcom 19x, Vistra 15x, AppLovin 14.5x, TSMC 19x, Forgent Power Solutions 18x, Nokia 19.5x, American Express 17x and Western Digital 14x. x.com x.com x.com x.com x.com x.com x.com x.com x.com x.com x.com
NVIDIA looks remarkably cheap for its growth, trading at a lower forward P/E than 266 S&P 500 companies, more than half the index, according to a chart from The Compound's Matt. That is despite earnings still growing at nearly triple digits after three years and one of the strongest growth profiles in the market. x.com
Dell is still a hardware company with low pricing power and only an 18% margin profile, which the FOMO chasers now piling in overlook. The stock may still go higher. x.com
Nvidia in 2026 is not Cisco in 2000: it grows over 100% a year at far lower multiples, making it still an amazing buy and likely the first $10T company, possibly by 2028. Cisco peaked near 200x earnings, 30x sales and 176x FCF on 55% growth; Nvidia trades at 30x, 18x and 45x with 75% gross margins. Forward, it is about 20x earnings and 22x FCF, near all-time lows, and supply constraints and contracts let it guide a full year ahead for the first time. A $6T cap would not mean overvalued. x.com … Show more
