From NASDAQ.: 2024-04-12 13:47:38

Nvidia stock is currently priced at $888, a 238% increase from a year ago, at 37 times trailing sales. Analysts at Raymond James believe this valuation is justified, with projections of the stock reaching $1,100 within a year.

Despite the high price, Nvidia shares are down 7% from recent highs due to concerns that AI customers may delay purchases for newer, more powerful chips. However, Raymond James maintains a strong buy rating, citing high demand for AI chips that Nvidia is able to sell.

Analysts predict Nvidia sales to more than double this year, reaching $60.9 billion, with sales tripling over the next four years to $196.3 billion by 2028. This growth trajectory positions Nvidia favorably in the semiconductor industry.

While Nvidia stock may seem expensive at 37 times sales and 76 times earnings, projections suggest continued growth potential with a 92% annualized earnings growth rate through 2028. Analysts argue that the stock may be undervalued relative to its future earnings potential.

The Motley Fool Stock Advisor team identified Nvidia stock as not among the 10 best stocks for investors to buy now. The Stock Advisor service offers guidance on building a successful portfolio and has outperformed the S&P 500 significantly since 2002, providing valuable insight into potential investment opportunities.



Read more at NASDAQ.: Think Nvidia’s Stock Price Is Too High? Maybe Not, According to 1 Wall Street Analyst