Does NVDA Deserve It?ĭoes NVDA stock price today justify its future realities? It does, but it also limits how much upside could be left. That’s why shares are up more than 80% in 2017, 170% in the past 12 months and 580% over the past two years. That’s why investors feel comfortable bidding up the stock to unimaginable heights. However, we know that no matter which company or companies win, the one constant helping to power it all will be Nvidia. We don’t know who will win those wars - be it the battle between Tesla Inc (NASDAQ: TSLA) and General Motors Company (NYSE: GM), or the cloud war between Microsoft Corporation (NASDAQ: MSFT) and, Inc. We all know self-driving cars, AI, and cloud storage will be highly relevant in the years to come.
So why pay up so much for NVDA, which notably, also trades at 14x sales? Even if we were to double it to 21%, I would still fold on a stock trading at 48 times earnings.įacebook Inc (NASDAQ: FB), Alibaba Holding Group Ltd (NYSE: BABA) and Alphabet Inc (NASDAQ: GOOGL) actually have better growth rates and trade at roughly half the premium. It may be forecast to grow 41% this year, but that growth slows to just 10.7% next year (fiscal 2019). It’s well positioned in every meaningful tech growth market, including self-driving cars, artificial intelligence (AI), data-centers, cloud-computing, and graphic cards used in gaming and cryptocurrencies.Īll of that growth has put an immense valuation on Nvidia, with NVDA stock trading at 48 times forward earnings estimates. The big question is, what will it do leading to up and after NVDA earnings? The Trouble With Valuing NVDA On Wednesday, it fell 2.5% in sympathy to AMD after previously nearing its 52-week high just under $200 a share. Plenty of investors have been looking at NVDA stock price today for clues as to what it might do.
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