NVIDIA's Story Keeps Getting Brighter

We’ve all become accustomed to NVIDIA’s NVDA 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, Eaton ETN, and others. Let’s take a closer look at how the company presently stacks up and details of the recent collabs.NVIDIA Keeps Inking DealsNVIDIA’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 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 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 RelationsNotably, 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 ResearchCurrent 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 LineNVIDIA NVDA continues to be the prime choice for those seeking exposure to the AI frenzy, with recent collaborations and deals with Eaton ETN and Novo Nordisk NVO 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.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Novo Nordisk A/S (NVO): Free Stock Analysis Report Eaton Corporation, PLC (ETN): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks