Nvidia's Stock Is Trading As If It's 2022 Again

DT Invest
2.79K Followers
(11min)

Summary

  • Looking at the current P/E ratio, Nvidia Corporation stock trades as if it is 2022 again, meaning that the market does not price in any AI factor at all.
  • Alphabet/Google's strong earnings release yesterday, together with their $75 billion AI spending plan, bolster Nvidia's long-term growth, supported by aggressive innovation and promising collaborations.
  • NVDA's strategic U.S. manufacturing expansion and partnerships with industry-leading players will help mitigate geopolitical risks and might uncover new operating efficiencies.

Nvidia Corporation building in Taipei, Taiwan.

BING-JHEN HONG/iStock Editorial via Getty Images

My thesis

Despite the fact that Nvidia Corporation (NASDAQ:NVDA) continues enjoying robust AI momentum, the stock has significantly underperformed since my previous bullish call with a 28% share price decline. As a

This article was written by

DT Invest
2.79K Followers
As an investor who started my path five years ago with my own capital, I represent a blend of hands on experience and academic background in corporate finance. Due to my relatively young age I thrive on discovering long-duration growth opportunities and actively seek out opportunities that align with my risk-taker mindset. In addition to my appetite for growth, I also understand the importance of balancing the portfolio with low-volatility dividend-playing names to be a well-rounded investor. In my analysis I prefer to rely on fundamentals with the business and strategic perspectives the most important in my opinion. As a person with the financial background I also pay attention on a company's financial performance and how intrinsic value of the stock looks compared to its price in real life. This does not mean that I am seeking deep discounts, but what I am looking is high-quality names with reasonable valuations. My experience as an investor taught me that if something is excessively cheap there are potentially numerous reasons for it and it is better to stay away from deep discounts. I invite readers to subscribe and follow my analysis because I am focusing on high-quality names, which does not necessarily mean only well-known companies but also potential new stars capable of delivering exponential share price growth over the long distance.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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