From Nasdaq: 2024-06-24 18:07:00

Nvidia (NASDAQ: NVDA) has seen a 190% surge in stock price, driven by its dominance in providing chips for the AI market. Recent 10-for-1 stock split aimed at broadening investor base and led to a 33% jump post-split. Despite high P/E ratio compared to tech giants, Nvidia’s PEG ratio suggests potential undervaluation.

Nvidia’s incredible growth is fueled by high demand for its chips, leading to a promising fiscal 2025 revenue target of $28 billion. Competition from companies like AMD exists, but Nvidia maintains an edge in research and development. The AI market’s continuous growth could keep demand high for Nvidia, making it a potential buy.

While Nvidia may appear overvalued based on traditional metrics like P/E ratio, factors like rapid growth and competition make it an intriguing investment option. Analysts predict strong growth potential for Nvidia, especially in light of the booming AI market. The company remains a popular choice among investors and has significant room for expansion.



Read more at Nasdaq: After Nvidia’s 10-for-1 Stock Split, Is It Still a Buy?