Tesla Investor Says Nvidia Is 'Wildly Undervalued' After Record Earnings: 'Returning Tons Of Capital To Shareholders'

Tesla Inc. investor Ross Gerber recently expressed his admiration for Nvidia, arguing that the tech company is significantly undervalued after the AI giant’s record quarter. 

What Happened: Gerber took to X on Thursday to heap praises on Nvidia Corporation NVDA, calling it “the most impressive company I've ever seen.” He lauded the company’s execution at all levels and its continued expansion in AI capabilities worldwide. 

Additionally, Gerber commended Nvidia for returning a substantial amount of capital to its shareholders. He concluded by stating his belief that the company’s stock is still “wildly undervalued.”

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Why It Matters: Gerber’s commentary was in response to Nvidia's Q4 earnings report, which exceeded forecasts. Nvidia’s Q4 results were indeed remarkable, as the company reported non-GAAP earnings per share of $5.16, surpassing the consensus estimate of $4.64. Its fourth-quarter revenue of $22.10 billion also beat the estimate, marking a year-over-year growth of 265%.

These impressive figures are bolstered by Nvidia’s foothold in the AI and gaming sectors. The company’s shares rebounded from a 68% decline to a 529% increase, demonstrating its resilience and command of cutting-edge technologies.

Gene Munster, managing partner and co-founder at Deepwater Asset Management, also emphasized Nvidia’s long-term growth prospects. He pointed out the immense market opportunity in the AI sector, which necessitates an infrastructure build of $1 Trillion over the next five years, doubling the current pace.

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