We’ve all become accustomed to NVIDIA’s NVDA stellar story, which has been fueled by unrelenting demand for its AI chips. Shares have seen bullish momentum off 2025 lows, with shares overall up a strong 25% on a YTD basis.
Recently, the company has been announcing notable collaborations, a list that includes Novo Nordisk NVO, Eaton ETN, and others. Let’s take a closer look at how the company presently stacks up and details of the recent collabs.
NVIDIA’s deal with the Kingdom of Saudi Arabia (KSA) is further proof that everybody wants their hands on its GPUs. More specifically, HUMAIN, a subsidiary of Saudi Arabia’s Public Investment Fund focused on AI, announced in May a major investment to build AI factories in KSA with a projected capacity of up to 500 megawatts powered by several hundred thousand of NVIDIA’s most advanced GPUs over the next five years.
And just over the past week, Eaton ETN unveiled a collaboration with NVIDIA, with Eaton now shifting to high-voltage direct current (HVDC) power infrastructure in artificial intelligence (AI) data centers. The company is collaborating with NVIDIA on design best practices, reference architectures, and innovative power management solutions tailored to support high-density GPU deployments, such as NVIDIA Kyber rack-scale systems with NVIDIA Rubin Ultra GPUs.
Further adding to the snowballing of deals NVDA has enjoyed, the company also unveiled a partnership with Novo Nordisk NVO to create customized AI models and agents that Novo Nordisk can utilize for early research and clinical development, as well as to apply advanced simulation and physical AI technologies.
NVIDIA (unsurprisingly) blew away quarterly expectations in its recent report yet again, continuing its long-established streak of robust quarterly results. The AI poster child continued to fire on all cylinders, with Data Center sales of $39.1 billion up a staggering 73% from the $22.5 billion print in the same period last year.
Below is a chart illustrating NVIDIA’s Data Center sales on a quarterly basis.
Image Source: NVIDIA Investor Relations
Notably, shares aren’t expensive on a historical basis, with the current 35.2X forward 12-month earnings multiple well below the five-year median and steep five-year highs of 106.3X. It’s worth noting that NVDA shares traded well above current valuation levels in 2020 and 2021, a period when the AI theme had yet to fully emerge and when shares were primarily driven by its gaming results.
The current PEG ratio works out to 1.3X, again beneath the five-year median and steep five-year highs of 5.5X.