Nvidia Stock Surges as Vast Data Deal Nears Completion Ahead of Earnings

Nvidia's stock rose 2% on Monday, bouncing back from last week's dip. Investors await the company's earnings update on August 27 for direction on the AI trade. Nvidia is also in talks to invest in AI storage specialist Vast Data, a deal that could value the startup at up to $30 billion. The company's chips remain the top pick for training AI models. Broadcom and AMD also saw gains, suggesting confidence in the AI supply chain.

Nvidia's stock rose 2% on Monday, rebounding from last week's dip. Investors are eagerly anticipating the company's earnings update on August 27, which could provide direction for the AI trade. Nvidia is also in discussions to invest in AI storage specialist Vast Data, which could value the startup at up to $30 billion. The company's chips remain the top choice for training AI models, with competitors Broadcom and AMD also seeing gains, indicating confidence in the AI supply chain.

Nvidia's stock price has been volatile, with a 59% increase over the past 52 weeks. As of Aug 1, 2025, the stock has a price-to-earnings (P/E) ratio of 55.32, based on an earnings per share (EPS) of $3.14 and a stock price of $173.72 per share [1]. This ratio is 4.6% above the historical average of 52.87 over the past ten years. Analysts are optimistic about the company's future, with EPS expected to climb by 45% year-over-year (YOY) for the second quarter of fiscal 2026, reaching $0.94 [2].

The company's recent expansion into the Chinese market, following the lifting of export restrictions, is expected to drive growth. Nvidia has ordered 300,000 H20 chipsets from Taiwan Semiconductor (TSM) to meet demand in China [2]. Despite concerns about the security of these chips, the high demand in China suggests a promising outlook for Nvidia's business in the region.

Nvidia's valuation is stretched compared to its peers, with a price-to-forward-earnings ratio of 44. However, the company's strong position in the AI market and its recent earnings performance indicate that investors are willing to pay a premium for its growth prospects [2].

References:
[1] https://fullratio.com/stocks/nasdaq-nvda/pe-ratio
[2] https://finance.yahoo.com/news/dear-nvidia-stock-fans-mark-134501141.html