NVIDIA Corporation (NVDA) reported a 73% increase in Data Center sales, reaching $39.1 billion, up from $22.5 billion year-over-year. CEO Jensen Huang highlighted strong global demand for NVIDIA’s AI infrastructure, with AI inference token generation surging tenfold in one year. As AI computing becomes essential like electricity and the internet, NVIDIA is positioned centrally in this transformation.
The company’s shares currently trade at a forward earnings multiple of 30.1X, significantly below five-year highs of 106.3X and median of 50.0X. The PEG ratio stands at a fair 1.1X, indicating stable growth potential compared to historical averages.
Global semiconductor manufacturing is projected to rise from $452 billion in 2021 to $803 billion by 2028, reflecting increasing demand for technologies like AI and IoT.
