Munro Partners flags Nvidia valuation gap as its Growth Fund trails for Q3 2026

Nvidia’s stock performance is lagging the company’s earnings growth, according to commentary shared by Munro Partners in its third-quarter 2026 review of the Munro Global Growth Fund. The firm’s view, published through a letter the fund manager says can be downloaded, frames the current market setup as an “opportunity” based on a perceived mismatch between operating results and the stock price.

The update also underscores the difficulty of that stance. The Munro Global Growth Fund reported a net decline of -12.6% in the quarter, suggesting investors were not rewarded during the same period in which the manager argued that Nvidia’s fundamentals were improving faster than the market price reflected.

Munro’s letter, as described in the publication, focuses on the idea that Nvidia is experiencing “massive earnings growth,” while the stock price action has not fully matched that trajectory. The implication for the manager’s thesis is straightforward: if earnings continue to expand and the valuation does not quickly adjust, the shares can become more attractive relative to fundamentals.

The market-news post does not lay out the specific valuation metrics Munro is using in the comparison, nor does it provide detailed financial data such as revenue, operating margin, or earnings-per-share figures in the excerpt available here. It also does not specify the magnitude of the alleged “lag,” such as how far earnings growth is ahead of what the share price implies. As a result, readers are left with the qualitative thrust of the argument rather than a fully quantified case in the text provided.

Nvidia, for its part, sits at the center of the modern compute boom driven by AI workloads. The company’s business model has increasingly been linked to data center demand and the broader buildout of accelerated computing systems, which can make investor expectations about earnings timing and durability highly sensitive. When sentiment shifts, the stock can move quickly even if company results are still trending upward.

Munro’s Q3 letter also serves as a reminder that fund commentary and fund performance can diverge in the short run. The fund’s -12.6% net result indicates that even investors aligned with a “valuation opportunity” view can face near-term pressure from broader risk appetite, sector rotations, or the timing of when fundamentals get repriced by the market.

What is still unclear from the available material is whether Munro is expressing confidence in earnings growth continuing at the same pace, or whether the central claim is more about relative valuation at a point in time. The publication similarly does not detail any explicit catalysts the manager expects, such as product milestones, customer deployment schedules, or changes in guidance.

Investors watching Nvidia for the next step would likely focus on whether earnings momentum continues and whether the market starts to align the stock price more closely with that trajectory. In parallel, fund investors may look for additional disclosure around how Munro weighs near-term volatility versus longer-term fundamentals in its portfolio decisions.