ETF Movement | Southern Double Long NVIDIA rises over 7% Nemotron 3 Ultra debuts Institutions point out unreasonable discount in NVIDIA's market valuation

According to Zhitong Finance APP, the Southern Double Long NVIDIA (07788) has risen over 7%, and as of the time of writing, it is up 6.77%, priced at HKD 153.05, with a trading volume of HKD 894,400.

In terms of news, on Wednesday local time, NVIDIA (NVDA.US) stated that its open-source Nemotron 3 Ultra AI model has surpassed closed-source models in terms of cost. NVIDIA mentioned in a statement that the open-source framework Langchain claims that its Deep Agents suite, specifically designed for Nemotron 3 Ultra, can achieve inference costs that are 10 times lower per run than some "leading" closed-source models, completing more tasks and achieving higher throughput.

Additionally, it is noteworthy that since the beginning of the year, NVIDIA's stock price has only increased by 3%, significantly lagging behind the Philadelphia Semiconductor Index, which has surged by 82%. Bank of America analysts believe that the current market valuation of NVIDIA implies an "unreasonable discount" on its earnings per share (EPS) for 2027/2028, which could reach 30-35%, causing its forward price-to-earnings ratio to drop to its lowest point in seven years (18 times). In other words, the market is paying for a risk that does not exist. Meanwhile, Bank of America stated that the market is overly concerned about rising memory costs, competition from custom chips (ASICs), crowded institutional holdings, and capital efficiency, while completely ignoring NVIDIA's unmatched pricing power, a supply chain commitment of up to USD 119 billion, and its continuously expanding market share