Joey Frenette
Mon, June 15, 2026 at 6:04 AM CDT

Jensen Huangpredicts AI hardware supply will trail demand for several years.

NVDA trades at 31x trailing P/E despite 70%+ sales growth, a surprisingly modest multiple compared to most other Magnificent Seven stocks.

Bears like Michael Burry hold put options against NVDA, wagering an AI demand collapse will eventually mirror the dot-com bust.

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Nvidia (NASDAQ:NVDA) CEO Jensen Huang is a great man to listen to if you're looking for a preview of what's to come from the future of the AI revolution. Indeed, it wasn't all too long ago that Mr. Huang was sounding upbeat about the AI boom at a time when the average investor could not even begin to fathom what AI was. Indeed, the launch of OpenAI's ChatGPT seemingly changed everything overnight, and as the GPU king, Nvidia hasn't looked back since.

With Nvidia seemingly trying to get past a checkpoint (or a lengthy consolidation channel) en route back to prior highs, questions linger as to what it's going to take to get the GPU leader back to its fast-gaining ways. With Mr. Huang saying things like "The whole industry supply chain" and everything being "in short supply because demand is so high."

Slaven Vlasic / Getty Images Entertainment via Getty Images

It certainly feels like Nvidia shares look like a bit of a gift at around $200 per share, especially if the scenario that Mr. Huang sees lasts for a couple of years. Indeed, he sees the supply-demand imbalance as "going to persist for several years." In my view, it's hard to argue against the man, especially given his stunningly accurate track record of calls over the years.

At this juncture, there certainly seems to be a bit of a value disconnect. How could a company with ridiculous growth and margins be going for a middle-of-the-pack (the pack being the Magnificent Seven) kind of multiple of 31.3 times trailing price-to-earnings (P/E)? Indeed, you could pay a far higher price for a company with a growth rate that's south of 10%.

While it's unreasonable to think that Nvidia's 70%+ sales growth and gross margins will last forever (in fact, these metrics could nosedive once the cycle turns, which is probably why so many have paused with Nvidia stock), perhaps investors should actually consider the most dangerous words of "things are different this time," even though it's gotten many into a steaming heap of trouble in past revolutionary booms, the most recent being during the dot-com bust.

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