The bull and bear cases for Nvidia are now colliding with unusual intensity. One camp points to a valuation that has not been this attractive since 2019, while the other warns that a delayed high-end rack could hand rivals a rare opening. The stock is trading near 179 euros in Frankfurt, down more than 11 percent from its May record, representing roughly one trillion dollars in evaporated market value over the past two months.
At a trailing price-to-earnings ratio of 22, Nvidia’s expected P/E sits at its lowest level in seven years — a multiple that predates the current artificial-intelligence boom. Analysts who emphasize the underlying business argue that the sell-off reflects a shift in investor sentiment rather than any deterioration in fundamentals. The company still commands an estimated 97 percent share of the server-GPU market, and consensus forecasts call for revenue growth of 82 percent in fiscal 2027.
That growth trajectory now faces a concrete test. According to industry reports, the ultra-high-end Kyber NVL144 rack — part of the forthcoming Rubin-Ultra platform — is experiencing delays that could push its launch beyond 12 months into 2028. The standard Rubin architecture is still on track for mass production in the second half of this year, but the absence of the top-tier rack gives competitors a window they have not had since Nvidia’s AI dominance solidified. AMD is preparing its MI500X, Google is rolling out its TPUv8i for hyperscaler customers, and even Huawei has an Atlas 350 chip targeting the inference market.
The stakes are enormous. The Rubin graphics processor itself packs 336 billion transistors, up from 208 billion on the Blackwell predecessor, promising significant efficiency gains for both training and inference. AWS, Google Cloud and Microsoft are expected to integrate the standard Rubin systems in the second half of the year, and hardware partners Dell and Lenovo are building the servers. OpenAI has already planned deployments around the new architecture. Nvidia still controls roughly 80 percent of the AI-chip revenue pool.
Wall Street is largely staying on board. The average analyst price target stands at nearly $324. Among recent calls, China Renaissance initiated coverage with a Buy and a $319 target, DA Davidson reiterated Buy at $300, and Needham repeated Buy at $270. Piper Sandler stands as a rare exception, downgrading to Neutral. The majority view is that the current price already discounts many of the known risks.
Should investors sell immediately? Or is it worth buying Nvidia?
The financial heft to weather a delay is undeniable. Nvidia’s operating cash flow surpassed $50 billion in its first fiscal quarter alone, and the company has a triple-digit-billion-dollar share buyback authorization on hand. Management guided for second-quarter revenue to nearly double from the prior year. But cost pressures are mounting: specialized memory chips are growing scarce and expensive, and while Nvidia has pricing power, higher input costs could compress margins if the delay pushes volume shipments further out.
The next major catalyst arrives on August 26, 2026, when Nvidia reports its quarterly earnings. The market is looking for earnings per share of $2.07, up from $1.04 a year earlier, on revenue of $91.7 billion — roughly a doubling. That report will clarify whether the cloud giants are sticking to their deployment timelines and whether the Rubin ramp remains on schedule.
From a technical perspective, the stock is hovering just below its 50-day moving average near 181 euros. After falling from the all-time high of 202.50 euros, the shares are attempting to form a base. If the support near current levels holds, a move back above the 200-euro mark is within reach. If it fails, the selling pressure could intensify.
For now, Nvidia’s valuation is back in pre-boom territory while its business is far larger and more profitable than it was then. The question is whether the delay in the ultra-high-end rack is a temporary speed bump or a structural opportunity for the competition. The earnings call at the end of August will likely provide the answer.
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