Zaid

And right now the stock is trading basically at the same forward PE as an average S&P 500 company.

Meanwhile, you have a company like Palantir, which has a similar growth rate to Nvidia, but that stock is trading at nearly 100 times forward earnings.

So that just kind of puts into perspective why Nvidia might be undervalued trading at 22 times forward earnings.

So what's my take here?

Well, look, I'm not going to sit here and tell you that NVIDIA is a risk-free investment.

In fact, I think that there are valid concerns.

I'm not so concerned about the AI doomerism stuff where AI is going to destroy the economy.

I'm more concerned about the potential pullback in AI spending from the hyperscalers in competition from custom-made chips.

But that being said, the valuation is pretty mind-blowing.

Nvidia grew revenues at 65% in 2025, and their guidance continues to blow past expectations moving forward.

Not to mention the shift from AI training to agentic AI is a massive tailwind, and then China could also come back into play.

22 times forward earnings, it's hard not to think that Nvidia might be undervalued.

The fundamentals of the company are strong, but given that the market is spooked about AI right now, there could be some short-term pain and volatility as everyone tries to figure out what an AI economy will look like going forward.

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Welcome back to The Rundown for another weekend deep dive.

Today, we are talking about Walmart.