Nvidia vs. Microsoft: Is NVDA’s Explosive Growth Being Undervalued?

There is something unusual about the way investors are pricing Nvidia Corporation (NASDAQ:NVDA) and Microsoft Corporation (NASDAQ:MSFT). Nvidia nearly doubled its revenue in a single year, while Microsoft grew at a far more familiar pace. And yet, Yahoo Finance’s most recently available valuation data put them at almost identical forward earnings multiples: 24.88 times for Nvidia and 25.13 times for Microsoft.

The comparison poses a serious question for investors: is the market putting too little weight on Nvidia’s growth, or too much faith in its durability? Before we get to the answer, we meticulously compiled a list of the best big name stocks to buy according to financial media, and there are eight stocks other than NVDA and MSFT that rank on that list. Access the complete list for free here.

Bull Case

Nvidia’s July-quarter results are difficult to dismiss as…