Nvidia Is a $5 Trillion Company — and It’s Still Undervalued

There’s currently only one company valued at $5 trillion: Nvidia (NASDAQ: NVDA). While that’s a huge market cap, I actually think Nvidia is undervalued.

It may seem counterintuitive to say the world’s largest company is undervalued, but after digging in a bit, I think you’ll see what I mean.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »

Impressive growth despite its size

Nvidia has risen to the top thanks to insatiable demand for its graphics processing units (GPUs). It’s the undisputed leader in this realm, and its products are the industry standard for AI training and inference. With the AI hyperscalers spending hundreds of billions of dollars on capital expenditures (capex) this year, it shouldn’t surprise anyone that the chipmaker’s growth continues to be impressive.

In the first quarter, revenue rose 85% year over year to $81.6 billion. That rate is more than the next four largest companies combined. Wall Street analysts project Nvidia to continue this acceleration trend through next quarter, with the average analyst guiding for 96% growth to $91.7 billion.

Those are absurd numbers, yet despite their impressive nature, the company still…