Key Takeaways
- NVDA has declined 8.2% since the beginning of the year and reached its lowest close since mid-December on Thursday
- The chip giant’s forward P/E ratio stands at 19.7x — below the S&P 500’s 20.3x for the first time since 2012
- Wolfe Research maintained its Outperform designation with a $275 price target after Nvidia unveiled Rubin Ultra “Pods” at GTC
- Jensen Huang, Nvidia’s CEO, indicated the company might manufacture approximately 200 pods weekly — translating to potential monthly revenue of $120 billion, according to Wolfe Research’s analysis
- According to J.P. Morgan data, NVDA continues to be the top individual stock choice for retail traders
Nvidia (NVDA) finished Thursday’s trading session at $109.02, marking its weakest close since the middle of December, as the semiconductor giant faces continued headwinds from widespread selling in artificial intelligence stocks.
In Friday’s premarket trading, NVDA showed a modest recovery of 0.3% following Thursday’s downturn.
Year-to-date performance shows the stock down 8.2% entering Friday’s market open.
This recent decline has brought Nvidia’s valuation metrics to an unusual position. When measured by forward price-to-earnings ratio, the stock now sits at 19.7 times projected earnings, based on FactSet data. This places it beneath the S&P 500’s 20.3 times forward earnings multiple.
This represents a significant milestone. Nvidia had consistently commanded a premium valuation compared to the S&P 500 on a forward P/E basis for an unbroken 13-year period — spanning from February 2013 through late February of this year, according to Dow Jones Market Data.
The premium status ended on February 28, coinciding with geopolitical tensions involving Iran that impacted broader market sentiment. Following that break, Nvidia has alternated between trading at a discount and premium relative to the benchmark index.
Retail Trading Activity Remains Strong
Notwithstanding the recent price decline, investor appetite for NVDA shares persists. For the trading week concluded March 25, Nvidia held the top position as the most actively purchased individual equity among retail traders, based on J.P. Morgan’s retail trading analysis.
Barron’s Roundtable investment experts also expressed unanimously favorable views on the stock.
Broadcom (AVGO) declined 0.9% in Friday’s premarket session, while Advanced Micro Devices (AMD) similarly dropped 0.9%.
Analysts Highlight Rubin Ultra Pod Revenue Potential
Wolfe Research reaffirmed its Outperform stance and $275 price objective on NVDA this week, pointing to Nvidia’s GTC conference revelation of Rubin Ultra “Pods” — a blueprint architecture designed for agentic AI computing facilities.
Wolfe’s analysis suggests each pod contains approximately $150 million worth of Nvidia technology. About two-thirds of this value comes from VR200 rack systems, with Groq accounting for the most substantial portion of additional revenue.
The research firm also highlighted that newly introduced components such as CPU, storage solutions, and Groq technology could boost revenue by 50% beyond VR compute racks alone. Groq LPX rack configurations provide an additional 25% revenue opportunity above the VR200 foundation, delivering low-latency inference capabilities for premium service offerings.
In a recent appearance on the Lex Fridman podcast, CEO Jensen Huang suggested the company might manufacture “about 200 of these per week, just for context.” Wolfe Research calculated the implications: producing 200 pods each week translates to approximately $120 billion in monthly revenue potential — a striking figure when compared to current Wall Street consensus projections of $482 billion in annual revenue for 2027.
Rosenblatt sustained its Buy rating alongside a $325 price objective, referencing clear visibility toward exceeding $1 trillion in combined orders for Blackwell and Rubin architectures extending through 2027. Cantor Fitzgerald likewise retained an Overweight designation at $300 following Nvidia’s GTC presentation. InvestingPro intelligence indicates 31 analysts have increased their earnings projections for the forthcoming period, with price targets stretching to $380.
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