Nvidia vs. Microsoft: Is NVDA’s Explosive Growth Being Undervalued?

There is something unusual about the way investors are pricing Nvidia Corporation (NASDAQ:NVDA) and Microsoft Corporation (NASDAQ:MSFT). Nvidia nearly doubled its revenue in a single year, while Microsoft grew at a far more familiar pace. And yet, Yahoo Finance's most recently available valuation data put them at almost identical forward earnings multiples: 24.88 times for Nvidia and 25.13 times for Microsoft. The comparison poses a serious question for investors: is the market putting too little weight on Nvidia's growth, or too much faith in its durability?