nvidia's ai dominance defies valuation concerns

2025-09-17 nvidia

new york, Wednesday, 17 September 2025.
despite high price-to-earnings ratios, nvidia’s stock shows bullish signals in september 2025. analysts point to nvidia’s strength in ai and data centers as key drivers. nvidia’s trailing p/e ratio stands at 48.66, while its forward p/e ratio is 38.02. investors are betting on nvidia’s continued growth, outweighing valuation worries. this confidence stems from nvidia’s leading position and future prospects in booming tech sectors. the interplay between valuation and growth shapes investment decisions and stock performance.

Short interest decline

NVIDIA’s short interest has decreased, indicating a more bullish market sentiment [4]. Short interest as a percentage of float fell by 4.55% since the last report [4]. Currently, 196.70 million shares are sold short, representing 0.84% of available shares [4]. The time required to cover these short positions averages 1.02 days based on trading volume [4]. This suggests decreased skepticism towards NVIDIA’s stock among investors [4].

Analyst optimism

Analysts maintain a bullish outlook on NVIDIA, emphasizing its growth potential [2]. NVIDIA’s rapid innovation cycle, driven by platforms like Blackwell and Rubin, positions it to capitalize on AI, industrial, and agentic markets [5]. Revenue indicators from Foxconn, a key NVIDIA supplier, point to a strong fiscal quarter three [5]. Gross margin recovery is expected to reach the mid-70s percentage range by the end of fiscal year 2026 [5]. This positive outlook reinforces investor confidence despite valuation concerns [2][5].

Stock performance and forecasts

On September 16, 2025, NVIDIA’s stock decreased by -1.61%, from $177.75 to $174.88 [6]. The stock experienced volatility with a 1.79% fluctuation, reaching a low of $174.38 and a high of $177.50 [6]. Trading volume decreased by 9 million shares, totaling 136 million shares traded, valued at approximately $23.85 billion [6]. Despite this, the stock is expected to rise by 16.70% over the next three months, potentially reaching between $198.58 and $226.29 [6].

Technical indicators

Technical analysis presents mixed signals for NVIDIA [8]. The long-term average indicates a sell signal, while the short-term moving average suggests a buy signal [6]. NVIDIA finds support at $170.78 [6]. As of September 17, 2025, NVIDIA’s price is $170.78, a change of -$4.09 (-2.34%), with a volume of $631.01K and a capitalization of $4.26T [8]. The valuation is considered ‘Overvalued’ with a rating of 87 out of 100 [8].

Bronnen

nvidia stock bullish trend