Blackstone Inc. is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The firm typically invests in early-stage companies. It also provide capital markets services. The real estate segment specializes in opportunistic, core+ investments as well as debt investment opportunities collateralized by commercial real estate, and stabilized income-oriented commercial real estate across North America, Europe and Asia. The firm's corporate private equity business pursues transactions throughout the world across a variety of transaction types, including large buyouts,special situations, distressed mortgage loans, mid-cap buyouts, buy and build platforms, which involves multiple acquisitions behind a single management team and platform, and growth equity/development projects involving significant majority stakes in portfolio companies and minority investments in operating companies, shipping, real estate, corporate or consumer loans, and alternative energy greenfield development projects in energy and power, property, dislocated markets, shipping opportunities, financial institution breakups, re-insurance, and improving freight mobility, financial services, healthcare, life sciences, infrastructure, enterprise tech and consumer, as well as consumer technologies. The firm considers investment in Asia and Latin America. It seeks to invest between $0.25 million and $900 million per transaction. It invests in companies with enterprise value between $500 million and $5000 million. It has a three year investment period. Its hedge fund business manages a broad range of commingled and customized fund solutions and its credit business focuses on loans, and securities of non-investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity. Blackstone Inc. was founded in 1985 and is headquartered in New York, New York with additional offices across Asia, Europe, North America and Central America.

Blackstone appears to be a high-quality but already expensive asset: strong profitability and business growth are combined with a noticeable premium to the sector on valuation multiples. P/E of 26.63, P/S of 5.81, P/B of 4.24, and P/FCF of 17.09 are significantly above the sector median, which limits re-rating potential and requires a discount to an aggressive forecast. At the same time, profitability is indeed high: ROE of 17.28%, ROA of 7.31%, ROI of 10.63%, and return on tangible equity of 19.18% are above industry benchmarks and supported by solid margins. Operating margin of 47.15% and net margin of 21.84% look very strong, and the year-over-year trend is generally stable, with no signs of deteriorating earnings quality. Revenue, operating income, and net income in TTM increased versus previous periods, confirming business scaling and the ability to generate income. The balance sheet, however, is not perfect: a current ratio of 0.72 and a quick ratio of 0.00 indicate weak short-term liquidity, while debt/equity of 0.63 and long-term debt of $13.20 billion create moderate pressure on financial flexibility. Equity and assets are growing, which mitigates but does not fully eliminate debt risk. Dividend yield is currently zero, so investors do not receive compensation for the high valuation through current cash yield. Overall, the fundamentals support a premium valuation for the business, but not strongly enough to justify maintaining an overly high target without adjustment. For an investor, this is a story about a high-quality, profitable, and steadily growing financial business that is already trading at a noticeable premium and therefore has limited upside over a one-year horizon.

Blackstone Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно упал. Медведи в растерянности.

Strong index, significantly down. The bears are confused.

Средний индекс, значительно упал. Рынок на стороне быков.

Medium index, significantly down. The market is on the bulls' side.

Средний индекс, значительно вырос. Рынок не поддерживает медведей.

Medium index, significantly up. The market does not support the bears.

Средний индекс, незначительно вырос. Отток средств из лонгов снизился, но остается значительным.

Medium index, slightly up. The outflow of funds from longs has decreased, but remains significant.

Средний индекс, незначительно упал. Приток средств в шорты снизился, но остается положительным.

Medium index, slightly down. The inflow of funds into shorts has decreased, but remains positive.

Strong profitability and BX’s growth support the valuation, but the high multiples premium, weak liquidity, and lack of dividends call for a more cautious target.

(RTTNews) - Alternative asset manager Blackstone Inc. (BX) announced on Tuesday that it intends to offer senior notes of its indirect subsidiary Blackstone Reg Finance Co., L.L.C., subject to market and other conditions.
The company said the notes would be fully and unconditionally guaranteed by Blackstone Inc. and certain indirect subsidiaries.
Blackstone said it plans to use the proceeds from the offering for general corporate purposes.
The notes will be offered under an existing shelf registration statement filed with the U.S. Securities and Exchange Commission, the company said.
Shares of Blackstone rose 1.53% to $120.90 in premarket trading after ending Monday's session up 0.92%.

Blackstone Announces Senior Notes Offering

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Telephone & Data Systems Inc (Symbol: TDS), where a total volume of 10,013 contracts has been traded thus far today, a contract volume which is representative of approximately 1.0 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 69.2% of TDS's average daily trading volume over the past month, of 1.4 million shares. Particularly high volume was seen for the $40 strike call option expiring November 20, 2026, with 2,501 contracts trading so far today, representing approximately 250,100 underlying shares of TDS. Below is a chart showing TDS's trailing twelve month trading history, with the $40 strike highlighted in orange:
Blackstone Inc (Symbol: BX) options are showing a volume of 24,301 contracts thus far today. That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 68% of BX's average daily trading volume over the past month, of 3.6 million shares. Especially high volume was seen for the $110 strike put option expiring October 16, 2026, with 3,380 contracts trading so far today, representing approximately 338,000 underlying shares of BX. Below is a chart showing BX's trailing twelve month trading history, with the $110 strike highlighted in orange:
And International Business Machines Corp (Symbol: IBM) saw options trading volume of 36,268 contracts, representing approximately 3.6 million underlying shares or approximately 64.4% of IBM's average daily trading volume over the past month, of 5.6 million shares. Especially high volume was seen for the $230 strike call option expiring September 25, 2026, with 1,205 contracts trading so far today, representing approximately 120,500 underlying shares of IBM. Below is a chart showing IBM's trailing twelve month trading history, with the $230 strike highlighted in orange:
For the various different available expirations for TDS options, BX options, or IBM options, visit StockOptionsChannel.com.
Further TDS Research:

Noteworthy Thursday Option Activity: TDS, BX, IBM

Harvard's Judgment Professor: Numbers Don't Make Decisions; People Do

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $131.4 million dollar outflow -- that's a 0.9% decrease week over week (from 528,150,000 to 523,550,000). Among the largest underlying components of HDV, in trading today Altria Group Inc (Symbol: MO) is up about 1%, Blackstone Inc (Symbol: BX) is down about 3.4%, and Duke Energy Corp (Symbol: DUK) is lower by about 1.1%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average:
Looking at the chart above, HDV's low point in its 52 week range is $23.515 per share, with $30.125 as the 52 week high point — that compares with a last trade of $28.64. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further HDV Research:

Noteworthy ETF Outflows: HDV, MO, BX, DUK

Looking at the universe of stocks we cover at Dividend Channel, in trading on Wednesday, shares of Blackstone Inc (Symbol: BX) were yielding above the 4% mark based on its quarterly dividend (annualized to $5.16), with the stock changing hands as low as $128.99 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1999 — you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 4% would appear considerably attractive if that yield is sustainable. Blackstone Inc (Symbol: BX) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Blackstone Inc, looking at the history chart for BX below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield.
Further BX Research:

Blackstone (BX) Shares Cross 4% Yield Mark

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Robinhood Markets Inc (Symbol: HOOD), where a total of 116,244 contracts have traded so far, representing approximately 11.6 million underlying shares. That amounts to about 54.1% of HOOD's average daily trading volume over the past month of 21.5 million shares. Particularly high volume was seen for the $125 strike call option expiring September 11, 2026, with 9,262 contracts trading so far today, representing approximately 926,200 underlying shares of HOOD. Below is a chart showing HOOD's trailing twelve month trading history, with the $125 strike highlighted in orange:
Blackstone Inc (Symbol: BX) saw options trading volume of 18,251 contracts, representing approximately 1.8 million underlying shares or approximately 52.7% of BX's average daily trading volume over the past month, of 3.5 million shares. Especially high volume was seen for the $133 strike put option expiring September 11, 2026, with 2,446 contracts trading so far today, representing approximately 244,600 underlying shares of BX. Below is a chart showing BX's trailing twelve month trading history, with the $133 strike highlighted in orange:
And Texas Pacific Land Corp (Symbol: TPL) options are showing a volume of 1,888 contracts thus far today. That number of contracts represents approximately 188,800 underlying shares, working out to a sizeable 52.4% of TPL's average daily trading volume over the past month, of 360,285 shares. Particularly high volume was seen for the $300 strike put option expiring October 16, 2026, with 826 contracts trading so far today, representing approximately 82,600 underlying shares of TPL. Below is a chart showing TPL's trailing twelve month trading history, with the $300 strike highlighted in orange:
For the various different available expirations for HOOD options, BX options, or TPL options, visit StockOptionsChannel.com.
Further HOOD Research:

Notable Wednesday Option Activity: HOOD, BX, TPL

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $165.7 million dollar outflow -- that's a 0.1% decrease week over week (from 1,024,650,000 to 1,023,300,000). Among the largest underlying components of IWF, in trading today McKesson Corp (Symbol: MCK) is up about 2.3%, Trane Technologies plc (Symbol: TT) is off about 0.7%, and Blackstone Inc (Symbol: BX) is lower by about 1.8%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average:
Looking at the chart above, IWF's low point in its 52 week range is $102.23 per share, with $129.14 as the 52 week high point — that compares with a last trade of $121.42. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further IWF Research:

IWF, MCK, TT, BX: Large Outflows Detected at ETF

Nvidia NVDA) stock has surged more than 7% on Thursday after the AI chip giant delivered another blockbuster quarterly report yesterday evening and, more importantly, gave Wall Street considerably more confidence that its extraordinary growth can extend well into next year.
Ahead of the report, several key questions surrounded Nvidia's Q2 results: whether its Vera Rubin platform was ramping on schedule, if gross margins could remain near 75%, and how much of the massive AI infrastructure buildout Nvidia would ultimately have to finance itself.
The answers were mostly encouraging, although investors still have a few risks to weigh before chasing today's rally.
Nvidia Crushes Q2 Expectations and Raises the Growth Bar
Nvidia posted Q2 revenue for its current fiscal 2027 of $96.22 billion, soaring 106% from $46.74 billion in the prior year quarter and comfortably topping estimates of $91.79 billion.
Adjusted net income came in at $53.95 billion, or earnings of $2.22 per share, up 120% year over year and beating Q2 EPS expectations of $2.09 by 6%. Data Center sales were the standout once again, jumping 117% to a record $89 billion.
Even more impressive was Nvidia’s outlook. The chip giant expects Q3 revenue of $108 billion, plus or minus 2%, with no Data Center compute sales from China included in that forecast.
Management also offered a preliminary expectation for roughly 70% revenue growth in fiscal 2028, despite anticipating that supply will remain constrained through the end of that reporting year.
That longer-term outlook arguably provided the biggest catalyst for today's rally, as Wall Street had been bracing for a much steeper slowdown in Nvidia's growth rate.
To that point, its Q3 revenue forecast came in above analyst consensus estimates of $102 billion (Current Qtr below), while the FY28 preliminary revenue forecast is well ahead of Zacks current projections of $553.24 billion or 42% growth.
Vera Rubin Is Becoming Nvidia's Next Growth Engine
The Vera Rubin ramp also provided the confirmation investors were looking for.
Production shipments began earlier this month, and Nvidia says it has already received purchase orders from every major hyperscaler, AI cloud provider, and system original equipment manufacturer (OEM).
Management expects Vera Rubin to account for roughly 20% of Data Center revenue in Q3 and believes it could become the fastest product ramp in Nvidia's history.
This suggests Nvidia is transitioning from its Blackwell platform to its next-generation AI architecture without the growth pause investors might normally expect during a major product cycle.
Gross Margins Are the Biggest Near-Term Blemish
Profitability remains exceptional, but this was one area where the report was less reassuring.
Nvidia maintained a 75% gross margin in Q2, but management expects it to slip to roughly 74% in Q3 and bottom between 71% and 72% in Q4 as surging memory prices increase system costs. Nvidia expects margins to settle around 72%-73% in FY28, with planned price increases beginning to provide some relief early next year.
Considering Nvidia's staggering revenue growth, these margins remain enviable. Still, investors should no longer assume that mid-70% gross margins are guaranteed as increasingly complex AI systems push component costs higher.
Over the trailing twelve months (TTM), Nvidia’s 74% gross margin has impressively outpaced the S&P 500’s 53% average and has topped its Zacks Semiconductor-General Industry average of 72%
Image Source: Zacks Investment Research
Is Nvidia Shifting the AI Financing Burden?
Nvidia's balance sheet remains formidable. The company finished Q2 with roughly $99 billion in cash and marketable debt and equity securities, while generating $24.1 billion in operating cash flow during the quarter.
However, Nvidia is deploying significant amounts of capital across its ecosystem. Non-marketable securities rose to more than $51 billion from $22 billion at the beginning of the fiscal year, while the company purchased $15.8 billion of equity securities during Q2 alone. Its supply and capacity commitments also surged from $119 billion last quarter to roughly $279 billion as Nvidia locks down memory and manufacturing capacity for future demand.
That said, Nvidia appears to be finding ways to bring much deeper pockets into the AI buildout. Its partnerships with major investment firms Apollo Global Management APO), BlackRock BLK), Blackstone BX), Brookfield Asset Management BAM), Goldman Sachs GS) and KKR KKR) are intended to mobilize more than $500 billion of third-party capital for AI infrastructure, creating independent pools of financing for Nvidia customers.
That could gradually shift more of the burden away from Nvidia's own balance sheet, although investors should continue monitoring its guarantees, strategic investments, and other commitments as the AI spending boom grows larger.
Monitoring Nvidia’s Valuation
Despite today's rally, Nvidia stock is still trading at just under 24X forward earnings following its impressive Q2 EPS beat.
Furthermore, upward earnings estimate revisions after such a strong report and outlook could quickly make Nvidia’s valuation even more appealing. Notably, NVDA is trading near its decade-low forward P/E of 20X and at a nearly 50% discount to its 10-year median of 45X.
Image Source: Zacks Investment Research
And if you're wondering, NVDA’s return over the last decade is near a staggering 14,500%
Image Source: Zacks Investment Research
Bottom Line: Should Investors Chase the NVDA Rally?
There is considerably more to like about Nvidia following Q2 earnings. The company crushed expectations, issued strong Q3 guidance, provided surprisingly bullish FY28 commentary, and offered concrete evidence that Vera Rubin is already becoming its next major revenue engine.
Margin pressure and Nvidia's enormous financial commitments prevent the story from being completely risk-free, and investors don't necessarily have to chase a 7% one-day spike. Still, the rally appears fundamentally supported rather than simply driven by post-earnings enthusiasm.
Most importantly, NVDA now sports a Zacks Rank #2 (Buy), reflecting a favorable earnings-estimate revision outlook.
For long-term investors, Nvidia's valuation still looks surprisingly reasonable relative to its growth trajectory, making pullbacks particularly attractive and today's post-earnings rally difficult to bet against.
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This article originally published on Zacks Investment Research (zacks.com).

Nvidia Stock Soars After Q2 Earnings: Is NVDA Still a Buy?

Key Points
Realty Income has a strong investment case over the next five years.
VICI Properties has a similarly strong case.
Despite that, it trades at a much lower valuation, which is why it currently has a higher yield.
I expect VICI Properties (NYSE: VICI) to outperform Realty Income (NYSE: O) over the next five years. That's a bold prediction for someone as bullish on Realty Income as I am. It's because I believe VICI Properties is much cheaper relative to Realty Income right now.
Here's why I expect this top high-dividend REIT to outperform Realty Income stock over the next five years.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Realty Income has a strong investment case
I want to be clear that I firmly believe Realty Income will be a strong investment over the next five years. The REIT has a diversified portfolio of durable properties (retail, industrial, gaming, and data centers). They provide it with resilient rental income to support its high-yielding monthly dividend (currently yielding over 5%). The REIT has a terrific track record of dividend growth, with 135 increases since its public market listing in 1994 and a 4.1% compound annual dividend growth rate.
I expect its growth to continue. Realty Income has a conservative dividend payout ratio (less than 75% of its adjusted funds from operations, or AFFO) and a strong investment-grade balance sheet (A-rating). It also has a growing list of strategic partners that provide growth capital and new investment opportunities, including Blackstone, which has closed two gaming investments with the REIT. I think Realty Income can continue growing its AFFO per share at a low- to mid-single-digit annual rate over the next five years to support continued dividend increases. Add that to its yield, and its total annual return could average around 10%, assuming no change in its valuation multiple.
The investment case for VICI Properties is even better
VICI Properties shares many similarities with Realty Income. It also invests in net lease real estate, though it focuses exclusively on experiential properties (i.e., gaming, hospitality, wellness, entertainment, and leisure destinations). It also has a strong dividend growth track record (every year since its IPO in 2018, at a net lease REIT-leading 7% compound annual rate) and a rock-solid financial profile (sub-75% AFFO payout ratio and an investment-grade balance sheet).
One core difference is the duration and inflation protection of its net leases. It typically invests in properties secured by very long-term leases (an average remaining lease term of 40 years), much longer than the 8-14-year average for net-leased properties. Meanwhile, an increasing percentage of its leases feature inflation-linked rental escalations (45% in 2026, rising to 87% by 2035), compared with the low fixed annual rent growth in most net leases. As a result, VICI Properties delivers faster same-store rent growth (1.7% in 2026, compared to the 0.4% sector average and 1.1%-1.3% for Realty Income). Add in acquisitions, and I think VICI can deliver mid-single-digit annual AFFO per share growth over the next five years.
Despite the similarities and the areas where VICI Properties stands above its peers, it trades at a much lower valuation than Realty Income (10.6x AFFO vs. 14.1x). That's why it has a higher dividend yield at nearly 7%.
Dual outperformance drivers
VICI Properties currently trades at a discount to Realty Income, even though it invests in properties with similar leases. I expect this discount to narrow over the next five years. Add that to its higher dividend yield, and I anticipate VICI Properties will produce a higher total return. While I own both REITs, I'd make a larger wager on VICI Properties right now because it could deliver bigger winnings over the next five years.
Should you buy stock in Vici Properties right now?
Before you buy stock in Vici Properties, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vici Properties wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,308!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,286,826!*
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Matt DiLallo has positions in Blackstone, Realty Income, and Vici Properties. The Motley Fool has positions in and recommends Blackstone and Realty Income. The Motley Fool recommends Vici Properties. The Motley Fool has a disclosure policy.

Prediction: This High-Yield Dividend Stock Will Outperform Realty Income Over the Next 5 Years

Key Points
Nvidia recently partnered with six financial institutions to create a new financing platform that will help smaller enterprises and AI labs purchase AI systems.
Many experts have been working under the assumption that Nvidia chips have a useful life of two to five years, but the actual figure may be closer to nine years.
Among 67 Wall Street analysts, Nvidia has a median target price of $300 per share. That implies 44% upside from its current share price of $208.
Nvidia (NASDAQ: NVDA) has been a cornerstone of the artificial intelligence (AI) trade since OpenAI introduced ChatGPT in late 2022. Shares have advanced more than 1,300% since January 2023, and most Wall Street analysts still view the stock as undervalued.
Nvidia recently announced a strategic partnership with six of the world's largest financial institutions to secure more than $500 billion in financing for potential customers. That capital will unlock demand by helping smaller enterprises and AI labs purchase Nvidia systems.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Here are the important details.
Nvidia taps a new $500 billion opportunity with a novel financing platform
Nvidia recently partnered with six financial institutions -- Apollo Global, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR -- to create new financing platforms designed to mobilize more than $500 billion in capital for artificial intelligence infrastructure. Nvidia itself may backstop up to $125 billion, or 25% of deals.
Nvidia hardware generally comes with a hefty price tag, which can make it prohibitively expensive for smaller enterprises and AI labs. These financing platforms aim to remove that obstacle by providing prospective customers with an alternative path to purchasing AI infrastructure. In doing so, they will extend Nvidia's addressable market.
"We are helping create a new class of productive, investable infrastructure: AI factories," CEO Jensen Huang commented in the press release. "These financing platforms will help customers access scarce compute at scale and build the AI factories that will power every industry and country in the age of AI."
The market may be underestimating the useful life of Nvidia chips
Nvidia systems are the industry standard in artificial intelligence infrastructure. With a full-stack approach that spans integrated hardware and software, the company can optimize data centers for performance and power efficiency in ways that most competitors cannot.
Jensen Huang says Nvidia systems cost less per token, generate more revenue, and have longer lifespans than alternative solutions. Indeed, there is evidence that Nvidia systems are proving much more durable than the market initially assumed. Neocloud CoreWeave recently signed a contract to rent Nvidia A100 GPUs (introduced in 2020) through 2029.
Analyst Kyle Reidhead recently explained the situation during an interview with Schwab Network: "What we are realizing is that the GPUs are used first for training on frontier models for about two or three years, then you get another three years on inference, and another three, four, or five years on niche training and niche work for enterprises."
So what? Michael Burry, best known for shorting subprime mortgages ahead of the financial crisis in 2008, currently has short positions in Nvidia and other AI companies. His rationale centers on this idea: The useful life for server equipment is about two to three years, but hyperscalers are depreciating the hardware over five years, which overstates the return on their investments in AI infrastructure.
However, recent commentary from CoreWeave suggests the useful life of Nvidia GPUs is much longer than five years, meaning hyperscalers may actually be understating the return on investment in AI infrastructure. And if the useful life of Nvidia chips is longer than previously anticipated by the market, it could strengthen the company's pricing power, as customers would theoretically be willing to pay more for a longer-lived product.
Wall Street analysts think Nvidia stock is deeply undervalued
Looking ahead, Wall Street estimates Nvidia's earnings will increase at 44% annually over the next three years. That makes the current valuation of 32 times earnings look downright cheap. Indeed, most Wall Street analysts believe the stock is undervalued.
As of Aug. 24, Nvidia has a median 12-month target price of $300 per share, according to The Wall Street Journal. That represents the consensus estimate among 67 analysts, and it implies 44% upside from the current share price of $208. Patient investors should consider buying a small position in Nvidia today.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $431,488!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,279,584!*
Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 26, 2026.
Trevor Jennewine has positions in Nvidia. The Motley Fool has positions in and recommends BlackRock, Blackstone, Brookfield Asset Management, Goldman Sachs Group, KKR, and Nvidia. The Motley Fool has a disclosure policy.