Happy Monday,
Nvidia trades at a 28 P/E (TTM). Coca-Cola trades at 27.
One of them grew earnings 111% last quarter. It was not Coke.
I am a dividend investor and Nvidia is now my largest position in 2026. Below is the math that got me there, plus why the Cisco comparison everyone keeps repeating falls apart the second you check it.
Today’s Topics:
Nvidia Just Became a Value Stock. (Watch Here)
Claude Just Saved Salesforce Stock. (Watch Here)
The Best Time to Buy This Stock in Over 10 Years? (Watch Here)
The Key Story
Nvidia Just Became a Value Stock. You're Being Lied To.
📊 Research NVDA: DividendData.com/stocks/nvda
▶️ Watch Full Video Here: https://www.youtube.com/watch?v=POW8M0FFYps
Nvidia just delivered one of the most impressive quarters in stock market history. Yet, despite the stock surging over 8% on earnings, the media narrative remains stuck on the "AI Bubble". Here is what the numbers actually show.
Q2 Earnings Highlights & Fundamentals
Revenue Boom: Q2 revenue came in at $96.22B (up 105% YoY), pushing trailing 12-month (TTM) revenue to $302.97B.
Earnings Surge: Adjusted EPS hit $2.22 (beating estimates by 6.2%), up 111% YoY.
Cash Flow Machine: TTM free cash flow reached $127B (up 76% YoY), second only to Apple in the entire market.
Historical Low Valuation: NVDA trades at a TTM P/E of ~28.27. For comparison, slow-growth Coca-Cola trades at a 27 P/E. NVDA's 5-year median P/E is 53.72—meaning a re-rating to historical medians implies a fair value of $376.58 (+64% upside).
Capital Return & Growth: NVDA recently raised its dividend by 2,400% (0.44% yield, ultra-safe payout ratio) and repurchased $57.44B in shares over the TTM, all while funding massive AI ecosystem acquisitions like Hugging Face.
Debunking the Cisco & Dot-Com Comparisons
Bears love comparing Nvidia to Cisco in 2000, but the data tells a completely different story:
Valuation at Peak: Cisco traded at a sky-high 115 TTM P/E on just 46% EPS growth. Nvidia is growing EPS at 96% TTM while trading at a 28 P/E.
Dark Fiber vs. Real Compute Shortage: Cisco sold routers to debt-laden telecoms building "dark fiber" ahead of actual demand. Nvidia is building behind demand. The market is currently in a massive compute shortage, with demand heavily constrained by supply through fiscal 2028.
Generative Token Utility: Fiber was passive infrastructure. AI infrastructure directly produces productive, revenue-generating tokens (e.g., agentic coding platforms).
Why I Made NVDA My Largest Position in 2026
Hyperscaler Spend Continues: Cloud giants (AWS, Azure, Google Cloud), Meta, and new entrants like SpaceX are rapidly expanding capex. SpaceX alone is targeting 10 gigawatts of NVDA-exclusive compute in 2027.
Diversifying Customer Base: Non-hyperscaler revenue (sovereign AI, enterprise AI factories, neoclouds) grew to $40.3B last quarter, creating a sticky and diversified moat.
My Portfolio Strategy: I built a position at a $182 average cost basis (up 24%) in my Roth IRA. Because I believe NVDA can be the first $10 trillion company, holding in a Roth allows tax-free flexibility to reallocate if a compute glut ever materializes in the 2030s.
One Week Left: The Founders Sale
I rebuilt DividendData.com from the ground up this summer, and the Founders Sale that launched with it ends Labor Day, Monday September 7.
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CRM Stock Analysis
Claude Just Saved Salesforce Stock
📊 Research CRM: DividendData.com/stocks/crm
▶️ Watch Full Video Here: https://www.youtube.com/watch?v=S33UuASHZ0I
Salesforce ($CRM) popped 25% post-earnings, breaking past the "SaaS apocalypse" narrative.
The Investment Beat: Adjusted EPS came in at $5.90 (up 103% YoY). However, $2.53 of that ($2.61B total) was driven by investment gains from an early $50M stake in Anthropic. Core business EPS grew a solid 16% YoY.
Anthropic Partnership: Instead of replacing software, Anthropic runs on Salesforce and co-developed Claude Force. Salesforce is also spending $300M on Claude tokens in 2026.
Deep Discount: CRM trades at just 14x price-to-free-cash-flow. Its 18.3 forward P/E sits well below its 5-year median (26.31), implying a $372.48 fair value (+43.7% upside).
INTU Stock Analysis
The Best Time to Buy Intuit Stock in Over 10 Years?
📊 Research INTU: DividendData.com/stocks/intu
▶️ Watch Full Video Here: https://www.youtube.com/watch?v=iwqFb6w-srY
Intuit ($INTU) is the owner of TurboTax, QuickBooks, Credit Karma, and Mailchimp. They just reported a stellar Q4 earnings beat of 12.6% on EPS, yet the stock fell 5% the next day. Driven down by broader software sector sell-offs, INTU is now down 56% from its all-time high despite generating record earnings.
Strong Growth & Cash Flow: Q4 revenue grew 14% YoY, while adjusted EPS rose 20% YoY. TTM free cash flow reached $8.62B (up 41% YoY).
15% Dividend Increase: INTU raised its dividend by 15%—its 5-year dividend CAGR sits at 15.26% with a safe 15% free cash flow payout ratio.
Highest Yield in 10+ Years: The forward yield sits at 1.41% (98th percentile historically) vs. its 10-year median yield of 0.72%.
Historically Low Multiples: INTU trades at a 20.8 TTM GAAP P/E and a 12.5 forward P/E (vs. a 10-year median P/E of 48.27). Returning to its historic median P/E implies over 100% upside.
Earnings and Dividend News Links:
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– Zach
Founder, Dividend Data
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Disclaimer: Dividend Dividend (Dividend Data LLC) is not a professional financial service. All materials released from Dividend Data (Dividend Data LLC) are for educational and entertainment purposes. Dividend Data (Dividend Data LLC) is not a replacement for a professional's opinion. Contributors to the Dividend Data (Dividend Data LLC) might have equities mentioned in the newsletter