BUSINESS

Hegseth didn’t rule out sending ground troops to Iran.

The Goldman Sachs trading desk has circulated a note flagging what it describes as a significant disconnect in Nvidia stock. The core observation is that NVDA is now trading at a forward price-to-earnings ratio below the S&P 500 for the first time in more than a decade, even as the company continues to deliver some of the strongest earnings growth in the index.According to the Goldman Sachs trading desk note, Nvidia is trading at approximately 19.7 times forward earnings. The S&P 500’s forward multiple sits at roughly 20.3 times. That gap is small in absolute terms but historically significant. It is the first time in more than 13 years that Nvidia has not traded at a premium to the broader index.What the Goldman note flagged for NvidiaGoldman’s trading desk described the current setup as a growth disconnect. Nvidia continues to deliver explosive fundamental results, yet the stock is being priced as if its growth days are behind it.The most recent quarter reinforced that point. Nvidia reported Q4 revenue of $68.1 billion, up 73% from the prior year. Data-center revenue reached $62.3 billion, up 75%. Full-year revenue came in at $215.9 billion. Those are not the numbers of a company trading at or below market multiples in a normal environment.Goldman’s note questioned why a company producing results of that magnitude is trading in line with the average S&P 500 constituent. The implication is that either the broader market is being too generous with valuations, or Nvidia is being unfairly punished for macro concerns that are separate from its business fundamentals.What is driving the Nvidia valuation compression?The compression reflects a broader repricing of high-growth technology stocks rather than a specific deterioration in Nvidia’s outlook. The tech sector’s forward P/E has dropped to around 21 times, the lowest in three years, even as earnings growth expectations remain elevated.Several macro forces have weighed on Nvidia specifically. More Nvidia:Goldman Sachs sends blunt message on Nvidia stock after GTCNvidia CEO makes bombshell call on AI’s next big thingBank of America resets Nvidia stock forecast after meeting with CFOThe Iran conflict has pressured the broader technology sector. Rising interest rates reduce the present value of future earnings, hitting high-multiple growth stocks hardest. China export controls remain a structural constraint on revenue. Together, these forces have pushed the stock down approximately 8% year to date.Wolfe Research, which reiterated an outperform rating with a $275 price target, called Nvidia’s Rubin Ultra Pods a blueprint for agentic AI data centers. Goldman’s own price target on the stock stands at $250.

Nvidia continues to deliver explosive fundamental results, yet the stock is being priced as if its growth days are behind it.Shutterstock

Why Nvidia’s demand picture remains strongAt GTC 2026, CEO Jensen Huang disclosed that Nvidia now sees at least $1 trillion in purchase orders for Blackwell and Vera Rubin chips through the end of 2027. That figure doubled what Huang cited at the same conference a year earlier.For the next quarter, Nvidia has guided toward a midpoint of $78 billion in revenue. Data center is the number investors are focused on most closely. Nvidia’s next earnings report is scheduled for May 27, 2026.What the valuation disconnect looks like in numbersNvidia forward P/E: Approximately 19.7 times, below the S&P 500’s roughly 20.3 times, according to Global Banking & Finance Review.Last time this happened: More than 13 years ago, before 2013.Q4 revenue:$68.1 billion, up 73% year over year.Data center Q4:$62.3 billion, up 75% year over year.Next quarter guidance: Midpoint of approximately $78 billion.Goldman price target: $250, per StockAnalysis.com. Next earnings: May 27, 2026.What this means for investorsGoldman’s note does not call Nvidia stock cheap in absolute terms. What it flags is the relative anomaly: A company producing outsized earnings growth is no longer rewarded with an outsized valuation premium. That is unusual, and the trading desk is pointing it out as a signal worth watching.The key risk to the bull case is not the business fundamentals. It is whether macro pressure, rising rates, and geopolitical uncertainty can keep the multiple compressed, even as the underlying results continue to beat expectations.If Nvidia delivers on its $78 billion guidance and raises again in May, the current valuation may look difficult to justify at parity with the S&P 500. That is the tension to which Goldman’s note draws attention.Related: Rosenblatt resets Nvidia stock price target for 2026

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The move comes as the chain distances itself from Optimism technology and toward in-house infrastructure as it seeks greater independence and scale.

A close below $67,300 for bitcoin would confirm six straight monthly losses amid ongoing macro pressures.

CoreWeave (CRWV) stock is getting fresh attention after a bullish call from Bank of America.The firm sees a much bigger opportunity ahead, driven by demand for AI infrastructure drastically outpacing supply.That imbalance is starting to shape the entire industry.As more companies race to build and deploy AI models, access to compute, power, and infrastructure is becoming one of the biggest bottlenecks.That puts companies like CoreWeave in a unique position. The question now is whether the shortage lasts long enough for CoreWeave to become a business with long-term staying power.CoreWeave valuation snapshotMarket cap: $39.3 billionEnterprise value: $66.0 billionShare price: $71Analysts’ avg target price: $120 (69% implied upside)2-Year expected annual revenue growth: 112.4%Forward EV/revenue ratio: 5.3xSource:TIKR.comBank of America sees a long runway as AI demand outpaces supplyCoreWeave stock moved higher after Bank of America reinstated coverage with a Buy rating and a $100 price target, pointing to strong demand for AI infrastructure and a broadening customer base.”We believe CoreWeave is well positioned to capture share of the $79bn AI infrastructure as a service (Iaas) market, given 1) sustained demand for AI compute; 2) its proprietary software optimized for AI workloads; and 3) strategic alliances with top-tier AI-native companies such as Nvidia and OpenAI,” said analysts led by Bank of America analyst Tal Liani.Analysts expect demand for AI compute to dramatically exceed supply for years. That creates a favorable setup for companies supplying infrastructure, especially those tied closely to major players like Nvidia and OpenAI.Tal highlighted CoreWeave’s positioning in a rapidly expanding market, noting the company could gain share in what is expected to become a $79 billion AI infrastructure-as-a-service opportunity.More AI Stocks:Morgan Stanley sets jaw-dropping Micron price target after eventBank of America updates Palantir stock forecast after private meetingMorgan Stanley drops eye-popping Broadcom price targetMore importantly, the firm believes supply constraints are not going away anytime soon.Analysts noted that capacity shortages in compute, power, and other resources are likely to persist for years, and they do not expect the supply-and-demand imbalance to ease before 2029.Backlog gives rare visibility into future demandCoreWeave’s backlog climbed to $66.8 billion at the end of 2025, with CFO Nitin Agrawal noting this was “More than four times where we began the year, providing exceptional visibility as we scale into 2026 and beyond.”This is an unusually large backlog for a company that generated a little over $5 billion in full-year 2025 revenue. It also explains why management is pressing ahead so aggressively. A backlog of that size strengthens CoreWeave’s hand with suppliers, data center partners, and financing counterparties, as customers reserve compute capacity well in advance.However, delays in power availability, hardware delivery, or customer ramp schedules remain key risks, as they would leave CoreWeave carrying financing and depreciation costs on a rapidly expanding infrastructure base while cash generation lags.That makes backlog quality just as important as backlog size. Investors will likely need more clarity over time on customer concentration, contract duration, pricing, and how quickly that $66.8 billion should convert relative to the company’s current revenue base.AI buildout is industry-wide; financing is notCoreWeave’s spending surge reflects a broader AI infrastructure race. Demand for compute remains strong, and companies like Nvidia, Microsoft, and Alphabet are all investing heavily to expand capacity.That validates the opportunity, but it doesn’t reduce the financing risk.CoreWeave is leaning aggressively into AI demand, with a $30-$35 billion capital expenditure plan for 2026, more than double its 2025 spending. Management is building capacity against demand that it says is already booked.However, the challenges are already showing up in the numbers. Big Tech can fund these buildouts with diversified cash flow. CoreWeave is trying to scale to meet that same demand with a far more levered balance sheet and already heavy interest expense.In Q4, revenue rose 110% year over year to $1.57 billion, but the company still posted a net loss of $452 million. CoreWeave also carries $21.4 billion of total debt against just $3.3 billion in shareholders’ equity.

Strong demand for AI compute is driving Big Tech to fund massive infrastructure buildouts.fotograzia via Getty Images

Depreciation is increasing as new infrastructure comes online, and financing costs remain heavy, with $388 million in interest expense in Q4 alone.The same market that supports its growth case also leaves little room for missteps.Competition adds another pressure point. As more industry capacity comes online, pricing could tighten.What could drive shares higherFaster backlog conversion lifts revenue ahead of fixed costs and improves earnings powerHigher utilization spreads depreciation across more billable workloads and supports margins  Longer-duration customer commitments improve cash-flow visibility and ease financing pressure  Better debt funding or refinancing reduces interest expense and lets more growth reach equity holders  A more diversified customer base lowers contract risk and supports valuation  What could pressure the stockDelays in power, hardware, or site readiness slow revenue while costs keep rising  Heavy depreciation outpaces monetization and keeps reported losses elevated  Interest expense stays high as borrowing expands, limiting equity value creation  Customer concentration leaves results exposed if a major tenant delays ramp plans  Aggressive spending leads to tighter credit terms or equity issuance  More industry capacity weakens AI compute pricing and cuts returns on new infrastructure  CoreWeave’s key takeawaysCoreWeave sits in one of the most attractive positions in the market, with strong customer demand and a clear role in the infrastructure layer powering AI.CoreWeave needs to convert demand into revenue quickly, keep utilization high, and manage its balance sheet as it scales. If it does, the current buildout can support a much larger business.If not, growth alone won’t be enough to drive returns for shareholders.Related: Jim Cramer resets Nio stock outlook after earnings

McCormick’s stock was set to surge amid talks to combine with Unilever’s foods business, but there’s no mention of the deal in the earnings report.

President Donald Trump reportedly told aides he would end the war in Iran without reopening the trade route.