Nvidia Update: Expecting Perfection In The AI Supercycle
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Avery Goodman2.25K FollowersFollow5ShareSavePlay(15min)CommentsSummaryNvidia Corporation delivered stellar financials—62% revenue and 65% operating income growth—but trades at extreme valuation multiples, pricing in near-perfect execution.NVDA growth deceleration is clear: projected revenue growth drops from 114% in FY2025 to 60% in FY2026 and 48% in FY2027, with margin compression risks emerging.Recent U.S. export policy shift may unlock China’s $50B AI chip market, but execution and regulatory risks remain, and only prior-generation NVDA chips are permitted.I rate NVDA stock a Hold—risk-reward is unattractive at current prices, despite sector leadership and ongoing AI-driven demand. Antonio Bordunovi/iStock Editorial via Getty Images The Company In General Nvidia Corporation (NVDA) trades at a 45+ forward price-to-earnings ratio and a 23+ price-to-sales multiple. Its market capitalization exceeds $4.5 trillion as of December 2025, and this is backed by extraordinary financial performance. ItThis article was written byAvery Goodman2.25K FollowersFollowA. B. Goodman is a licensed attorney, securities industry dispute resolutions arbitrator, a writer of articles addressing issues of current interest, and a novelist. He is the author of the forthcoming action-packed Wall Street murder/mystery thriller, "The Bank."He holds a B.A. from Emory University, where he concentrated on history and economics. He also holds a Juris Doctorate degree from the University of California at Los Angeles Law School and is a member of the Bar, licensed to practice law in several jurisdictions. His career has consisted not only of prosecuting cases on behalf of clients, but in judging the claims of others. He serves as a member of the roster of neutral arbitrators of the National Futures Association (NFA) and the Financial Industry Regulatory Authority (FINRA).Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You