We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NVIDIA's story continues to be one of, if not, the best in the market.
Everybody wants their hands on NVIDIA's GPUs, reflected by recent demand and deals.
The AI frenzy remains in the early innings.
We’ve all become accustomed to NVIDIA’s (NVDA - Free Report) stellar story, which has been fueled by unrelenting demand for its AI chips. Shares have seen bullish momentum off 2025 lows, with shares overall up a strong 25% on a YTD basis.
Recently, the company has been announcing notable collaborations, a list that includes Novo Nordisk (NVO - Free Report) , Eaton (ETN - Free Report) , and others. Let’s take a closer look at how the company presently stacks up and details of the recent collabs.
NVIDIA Keeps Inking Deals
NVIDIA’s deal with the Kingdom of Saudi Arabia (KSA) is further proof that everybody wants their hands on its GPUs. More specifically, HUMAIN, a subsidiary of Saudi Arabia’s Public Investment Fund focused on AI, announced in May a major investment to build AI factories in KSA with a projected capacity of up to 500 megawatts powered by several hundred thousand of NVIDIA’s most advanced GPUs over the next five years.
And just over the past week, Eaton (ETN - Free Report) unveiled a collaboration with NVIDIA, with Eaton now shifting to high-voltage direct current (HVDC) power infrastructure in artificial intelligence (AI) data centers. The company is collaborating with NVIDIA on design best practices, reference architectures, and innovative power management solutions tailored to support high-density GPU deployments, such as NVIDIA Kyber rack-scale systems with NVIDIA Rubin Ultra GPUs.
Further adding to the snowballing of deals NVDA has enjoyed, the company also unveiled a partnership with Novo Nordisk (NVO - Free Report) to create customized AI models and agents that Novo Nordisk can utilize for early research and clinical development, as well as to apply advanced simulation and physical AI technologies.
NVIDIA (unsurprisingly) blew away quarterly expectations in its recent report yet again, continuing its long-established streak of robust quarterly results. The AI poster child continued to fire on all cylinders, with Data Center sales of $39.1 billion up a staggering 73% from the $22.5 billion print in the same period last year.
Below is a chart illustrating NVIDIA’s Data Center sales on a quarterly basis.
Image Source: NVIDIA Investor Relations
Notably, shares aren’t expensive on a historical basis, with the current 35.2X forward 12-month earnings multiple well below the five-year median and steep five-year highs of 106.3X. It’s worth noting that NVDA shares traded well above current valuation levels in 2020 and 2021, a period when the AI theme had yet to fully emerge and when shares were primarily driven by its gaming results.
The current PEG ratio works out to 1.3X, again beneath the five-year median and steep five-year highs of 5.5X.
Image Source: Zacks Investment Research
Current consensus estimates allude to 42% EPS growth in its current fiscal year on 52% higher sales, with next year’s expectations suggesting an additional 32% pop in EPS paired with a 25% sales climb. All in all, NVDA shares have enjoyed an unbelievable run thanks to robust results, with even further upside remaining given the early-inning nature of the broader AI frenzy.
Bottom Line
NVIDIA (NVDA - Free Report) continues to be the prime choice for those seeking exposure to the AI frenzy, with recent collaborations and deals with Eaton (ETN - Free Report) and Novo Nordisk (NVO - Free Report) further solidifying its critical role during the broader trend.
The AI theme is set to continue for years, and NVIDIA will remain a significant beneficiary in both the near- and long-term.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
NVIDIA's Story Keeps Getting Brighter
Key Takeaways
We’ve all become accustomed to NVIDIA’s (NVDA - Free Report) stellar story, which has been fueled by unrelenting demand for its AI chips. Shares have seen bullish momentum off 2025 lows, with shares overall up a strong 25% on a YTD basis.
Recently, the company has been announcing notable collaborations, a list that includes Novo Nordisk (NVO - Free Report) , Eaton (ETN - Free Report) , and others. Let’s take a closer look at how the company presently stacks up and details of the recent collabs.
NVIDIA Keeps Inking Deals
NVIDIA’s deal with the Kingdom of Saudi Arabia (KSA) is further proof that everybody wants their hands on its GPUs. More specifically, HUMAIN, a subsidiary of Saudi Arabia’s Public Investment Fund focused on AI, announced in May a major investment to build AI factories in KSA with a projected capacity of up to 500 megawatts powered by several hundred thousand of NVIDIA’s most advanced GPUs over the next five years.
And just over the past week, Eaton (ETN - Free Report) unveiled a collaboration with NVIDIA, with Eaton now shifting to high-voltage direct current (HVDC) power infrastructure in artificial intelligence (AI) data centers. The company is collaborating with NVIDIA on design best practices, reference architectures, and innovative power management solutions tailored to support high-density GPU deployments, such as NVIDIA Kyber rack-scale systems with NVIDIA Rubin Ultra GPUs.
Further adding to the snowballing of deals NVDA has enjoyed, the company also unveiled a partnership with Novo Nordisk (NVO - Free Report) to create customized AI models and agents that Novo Nordisk can utilize for early research and clinical development, as well as to apply advanced simulation and physical AI technologies.
NVIDIA (unsurprisingly) blew away quarterly expectations in its recent report yet again, continuing its long-established streak of robust quarterly results. The AI poster child continued to fire on all cylinders, with Data Center sales of $39.1 billion up a staggering 73% from the $22.5 billion print in the same period last year.
Below is a chart illustrating NVIDIA’s Data Center sales on a quarterly basis.
Image Source: NVIDIA Investor Relations
Notably, shares aren’t expensive on a historical basis, with the current 35.2X forward 12-month earnings multiple well below the five-year median and steep five-year highs of 106.3X. It’s worth noting that NVDA shares traded well above current valuation levels in 2020 and 2021, a period when the AI theme had yet to fully emerge and when shares were primarily driven by its gaming results.
The current PEG ratio works out to 1.3X, again beneath the five-year median and steep five-year highs of 5.5X.
Image Source: Zacks Investment Research
Current consensus estimates allude to 42% EPS growth in its current fiscal year on 52% higher sales, with next year’s expectations suggesting an additional 32% pop in EPS paired with a 25% sales climb. All in all, NVDA shares have enjoyed an unbelievable run thanks to robust results, with even further upside remaining given the early-inning nature of the broader AI frenzy.
Bottom Line
NVIDIA (NVDA - Free Report) continues to be the prime choice for those seeking exposure to the AI frenzy, with recent collaborations and deals with Eaton (ETN - Free Report) and Novo Nordisk (NVO - Free Report) further solidifying its critical role during the broader trend.
The AI theme is set to continue for years, and NVIDIA will remain a significant beneficiary in both the near- and long-term.