Neutral impactResults
Tech Selloff: The Kobeissi Letter Says NVIDIA is Cheap at 13 PE; Users Counter View
NDTV Profit 2 hrs ago·6 Nov 2026, 7:31 am
A debate has erupted on social media regarding the valuation of major technology stocks, specifically NVIDIA. The Kobeissi Letter, a popular market commentary account, recently argued that the stock is undervalued, pointing to a forward price-to-earnings ratio of 13. This metric suggests the stock is trading at a price that is low relative to its expected future earnings. However, other users countered this view, arguing that the company's recent earnings growth was artificially inflated by the massive spending on Artificial Intelligence infrastructure over the past few years. They contend that this buildout is unsustainable and that the current valuation does not reflect a realistic long-term outlook.
This discussion highlights the ongoing uncertainty surrounding the tech sector. Investors are currently trying to determine if the current high valuations are justified by sustainable growth or if they are the result of a temporary boom in AI spending. The divergence in opinion suggests that the market is at a critical juncture, where the future trajectory of these companies depends heavily on their ability to maintain growth momentum.
For investors, the key takeaway is to monitor the upcoming earnings reports closely. These reports will provide crucial data on whether the demand for AI products remains strong or if it is beginning to cool down. The market's reaction to this data will likely determine the next major move for the sector.
Key takeaways
- Category: Results.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. Use the price and stock snapshot to gauge how the market is responding.
