Why Legendary Investor Michael Burry Says Nvidia Stock Is ‘Wildly Undervalued’… and Why He’s Still Cautious on Shares
Nvidia's stock has been near its year-to-date high following a strong second quarter, yet renowned investor Michael Burry believes the company is "wildly undervalued" with a forward price-earnings (P/E) ratio of about 24x. Despite Nvidia's impressive earnings growth and beating estimates, Burry remains cautious about the stock's long-term prospects, warning that the company's extraordinary margins and competitive advantage may not be sustainable.
Wall Street, however, continues to be bullish on Nvidia, with a consensus rating of "Strong Buy" and a mean price target of $307, indicating a potential upside of over 30% from current levels.
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