Novo Nordisk (NVO) is Trending On Reddit – Here’s Why

NVO -5.58% NONOF -6.25%

We recently published Top 10 Non-AI Stocks Redditors are Buying Ahead of Potential Bubble Burst. Novo Nordisk A/S (NYSE:NVO) is one of the top non-AI stocks Redditors are buying.

Novo Nordisk A/S (NYSE:NVO) has long been a favorite stock of Redditors, and its popularity recently increased on the social media platform as investors recommended it as a non-AI play.

However, many investors are now questioning the company’s fundamentals. Recently, the company cut its full-year guidance, citing lower-than-expected sales of Wegovy and Ozempic.

Some investors point to the lower P/E of the stock. However, a Redditor recently countered this argument during a discussion:

“About valuation, the current forward P/E is 13, but that number only looks cheap because earnings are at an unsustainably high margin peak (50 % EBIT). If you normalize margins to even 25-30 %, that forward P/E doubles instantly.”

Vltava Fund stated the following regarding Novo Nordisk A/S (NYSE:NVO) in its third quarter 2025 investor letter:

“Novo Nordisk A/S (NYSE:NVO) probably needs no long introduction. It is one of Europe’s largest companies and a global leader in the treatment of two major lifestyle diseases – diabetes and obesity. The company has grown historically through the development and production of insulin and has held a dominant share of the global market in that group of products for decades. In recent years, obesity treatment has become its key growth segment. Its best-known product is Wegovy, which has proven to be highly effective in weight reduction. A smaller part of the business consists of drugs for rare diseases, particularly in the areas of hemophilia and growth hormone therapy. Novo Nordisk has highly integrated production, from molecule development to fully automated filling lines for injection pens, and global distribution to more than 170 countries, with a focus on the United States, Europe, and a rapidly growing share in Asia. Its biggest competitor is Eli Lilly, and these two companies now effectively form a duopoly in modern treatment of diabetes and obesity. Barriers to entry into the industry are extremely high, due to long development times, regulation, and enormous investments in production and distribution.

While we acknowledge the potential of NVO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.