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I have asked for my circles and I cannot get a direct answer to why the shares of NVIDIA (NVDA) are so cheaply appreciated on a multiple basis of price win.
So I come to you for answers – let them fall to me on x @brianissozzi. What am I missing at Nvidia? Let’s discuss!
I warn that this is not that I buy an Nvidia buy that will buy the win on 26 February on my way to the win. We are in the context Game as it is about investing.
This is just a general callout that the market may have a mistake in how he appreciates Nvidia.
NVIDIA is currently one of the most cheap -rated AI shares, if you can wrap your head around it!
Based on a forward price-profit multiple basis, Yahoo finance data shows 31 times that Nvidia trade acts 31 times. Broadcom (AVGO) and Marvell Technology (MRVL) are appreciated 35 times and 41 times respectively. Arm Holdings (arm) clocks in 76 times.
Listen: What Bill Gates thinks of the CEO of Nvidia
Next: February 21 at 16:00:01 pm Est
Zoom further out and the shares of Nvidia act with a discount on various other “Magnificent Seven” members.
The shares of Tesla (TSLA) act in the profit of 121 times forward. Amazon (Amzn) acts 36 times.
There are two reasons for this strange level of valuation at Nvidia, the former analyst in me.
Firstly, the street has its forward estimates about the profit of Nvidia.
Yahoo Finance -Data shows that Nvidia’s first quarter of a profit per share (EPS) trend has been driven modest in the last 30 days. The street has also performed its estimates of 2025 EPS on Nvidia for more than 60 days.
I think this is bizarre.
Despite the Deepseek-based Deepseek that fluctuates the Super-Bullish AI thesis earlier this year, Wall Street Nvidia still sees the global build-out of AI infrastructure. Aggressive 2025 capital expenditements by hyperscalers such as Amazon (AMZN) and Meta (Meta) shared during this profit season underlines the point.
“In the coming decades the investment [in artificial intelligence] Will happen, “said Kate El-Hillow, Chief Investment Officer of Russell Investments, me at the opening podcast of Yahoo Finance (video above).
Then the other possible explanation with EPS estimates that are not rising, the stock price of Nvidia is in a waiting mode. While the stock is hard from the Levels of February, it has still disadvantaged the S&P 500 (^GSPC) this year. Shares have fallen from the beginning of November 2024 Highs.
