Market prices Nvidia near 25x forward P/E after earnings rally

NVIDIA's latest earnings report gave traders fresh numbers to argue over, and some of the loudest debate shifted from revenue growth to valuation. The company said on May 20 that first-quarter fiscal 2027 revenue rose 85% from a year earlier to $81.6 billion, with data center revenue up 92% to $75.2 billion. A retail-trader post on X dated May 24 said the market was valuing NVIDIA at roughly 25 times forward earnings and argued that the stock often offers a better entry after earnings than before them. (investor.nvidia.com 1) (investor.nvidia.com 2) NVIDIA's investor site showed the shares at $215.33 on a delayed basis when accessed on May 24. ### Why are traders talking about forward P/E instead of the headline beat? NVIDIA reported GAAP earnings per diluted share of $2.39 and non-GAAP earnings per diluted share of $1.87 for the quarter ended April 26, 2026. Those are backward-looking figures, while a forward price-to-earnings multiple reflects what investors expect the company to earn over the next 12 months. (investor.nvidia.com) The May 24 X discussion framed that forward multiple at about 25 times earnings after the post-results move. (x.com) That metric matters to traders because it compresses the question into a single comparison: how much investors are paying today for forecast profit growth that has not yet been reported. (investor.nvidia.com) ### What in NVIDIA's earnings release supports the bullish side of that argument? NVIDIA said on May 20 that revenue reached a record $81.6 billion and that data center revenue hit a record $75.2 billion. The company also said data center compute revenue was $60.4 billion and data center networking revenue was $14.8 billion under its previous reporting framework. (investor.nvidia.com) (x.com) Jensen Huang, NVIDIA's chief executive, said in the release that the "buildout of AI factories" was "accelerating at extraordinary speed." That comment, together with the company's revenue growth, helps explain why traders are willing to discuss valuation in relation to future earnings rather than recent quarterly profit alone. (investor.nvidia.com) That is an inference from the company release and the X trading discussion. ### Why would traders wait 48 hours after earnings instead of holding through the report? (investor.nvidia.com) A May 24 post on X said NVIDIA had risen after only one of its last five earnings reports and recommended buying a dip roughly 48 hours later rather than holding through the release. The post tied that approach to NVIDIA's earnings cadence and to the possibility of short-term weakness even after strong operating results. (investor.nvidia.com) NVIDIA's own release did not discuss trading strategy. The company's filing-focused materials instead emphasized revenue, margins, earnings per share, capital returns and a new reporting structure. (investor.nvidia.com) ### Does the company itself point investors toward any near-term milestones? (x.com) NVIDIA's investor calendar lists its 2026 annual meeting of stockholders for June 24, 2026. The company also said its increased quarterly cash dividend of $0.25 per share will be paid on June 26, 2026, to shareholders of record on June 4, 2026. (x.com) (investor.nvidia.com) May 20 remains the key date for the current debate because that is when NVIDIA published the earnings report that set off the latest valuation discussion. June 24 is the next dated event on the investor site where shareholders can look for formal company materials rather than trader commentary. (investor.nvidia.com) (investor.nvidia.com)