By Trefis Team
Publication Date: 2026-06-04 15:25:00
Why is the market pricing a company with one of the strongest technology moats ever built at the same multiple as the companies that integrate its chips into servers?
Nvidia (NVDA) trades at roughly 23.5x forward earnings. So do Dell Technologies (DELL) and Hewlett Packard Enterprise (HPE), near 23x as well.
However, the growth rates and margins tell a sharply different picture. Dell is expected to grow around 50% this year. HPE closer to 20%. Nvidia is on track to grow revenue by roughly 80% this year, on top of a revenue base of approximately $215 billion. Nvidia also has net margins above 50%, ahead of the single-digit margins Dell posted during its latest quarter.
Nvidia is valued at more than $5 trillion. At that scale, an 80% growth rate is not just impressive. It is almost without precedent in the history of corporate America.
The market is valuing all three identically. That is either a remarkable mispricing of the most important technology platform of this generation, or the market knows something about Nvidia’s future that the growth rate alone does not show.
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