Nvidia trades at the same valuation multiple as Dell and HPE despite growing revenue at roughly 80% annually on a $215 billion base, with net margins above 50%.

Nvidia (NVDA), Dell Technologies (DELL), and Hewlett Packard Enterprise (HPE) all trade at roughly 23x forward earnings, despite sharply different growth rates and margins. Nvidia is on track to grow revenue by roughly 80% this year; Dell is expected to grow around 50%; HPE closer to 20%. Nvidia has net margins above 50%, while Dell posted single-digit margins in its latest quarter.

Nvidia's competitive advantage extends beyond chip design. Its H100 and Blackwell GPU architectures sit at the center of nearly every major AI training workload. Around those chips, Nvidia built CUDA, a software ecosystem developed over more than fifteen years that thousands of researchers, developers, and enterprises depend on daily. Nvidia also controls the Mellanox networking stack connecting GPUs inside data centers and sells complete AI systems, developer tools, and inference software.

Dell and HPE provide integration, supply chain management, and services but rely on intellectual property from others—GPUs from Nvidia, much of the networking from Nvidia. Their gross margins, historically in the 15% to 25% range, reflect their position in the value chain. The market may be acknowledging that sustaining growth at Nvidia's $5 trillion-plus scale is nearly without precedent, while Dell and HPE, worth about $360 billion combined, have more room for multiple expansion.