Market Insight: Good news for investors: The Nvidia stock is as cheap as it has been in over ten years
The downgraded valuation of the US chip company reflects investors' skepticism. Andreas Neuhaus believes that two arguments now speak in favor of the Nvidia stock.
Nvidia has become the world's most valuable company, with a market value of over $5 trillion. Despite this, its stock is trading at a price-to-earnings ratio of around 17, which is the lowest in over a decade, according to Bloomberg. The company's financial chief, Colette Kress, expects a 70% revenue growth for the fiscal year 2028.
Analysts are recommending the stock, with 79 out of 82 experts advising to buy, and a target price of around $323, which is over 40% higher than the current level. However, investors are concerned that Nvidia may not be able to maintain its high margins due to increasing competition.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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