NVIDIA Corporation (NVDA) has seen a significant 25% increase in share value year-to-date, fueled by robust demand for its AI chips. The company’s Data Center sales reached $39.1 billion in its latest quarterly report, representing a 73% year-over-year increase from $22.5 billion.
NVIDIA’s Recent Collaborations
Recently, NVIDIA announced collaborations with Eaton Corporation (ETN) and Novo Nordisk (NVO). Eaton is partnering with NVIDIA to develop high-voltage direct current (HVDC) infrastructure for AI data centers while Novo Nordisk aims to create customized AI models for research and clinical development. Additionally, a partnership with the Kingdom of Saudi Arabia’s HUMAIN is set to establish AI factories powered by NVIDIA GPUs, projected to deliver a capacity of up to 500 megawatts over five years.
The forward 12-month earnings multiple for NVIDIA stands at 35.2X, significantly below its five-year high of 106.3X. Current consensus estimates project a 42% growth in earnings per share (EPS) for the current fiscal year alongside a 52% increase in sales.
