Nvidia just hit record highs, but stock may still be ‘cheap,’ says analyst

Nvidia (NVDA) inventory simply hit all-time highs, however one analyst argues it is nonetheless “low cost.”

“We cowl a various basket of AI-related shares and Nvidia is now buying and selling at solely a modest premium to the group on a PE foundation,” Melius Analysis analyst Ben Reitzes wrote in a word to traders. “Dare we are saying Nvidia is now low cost?”

The analyst highlights the graphics chip big’s inventory is buying and selling at 28 instances consensus earnings projections for 2024.

“This a number of is beneath stalwarts like AMZN (AMZN), ADBE (ADBE) and MSFT (MSFT)—although Nvidia estimates could also be among the many most conservative,” he added.

Nvidia is up 240% year-to-date after posting back-to-back blowout quarters in 2023. The corporate’s second quarter earnings blew away already sky-high expectations because the AI hype prepare continues to push the inventory greater.

Such outcomes have prompted analysts to query, “How excessive can the inventory go?”

Melius Analysis has a Purchase score on the inventory, with a worth goal of $730 versus a mean Road consensus of $643.

The best worth goal on the inventory is $1100, assigned by Rosenblatt Securities analyst Hans Mosesmann.

A Nvidia logo is seen on one of their products on display at their headquarters in Taipei, Taiwan May 31, 2023. REUTERS/Ann Wang

A Nvidia emblem on a product on show at its headquarters in Taipei, Taiwan, Might 31, 2023. (Ann Wang/REUTERS)

On Wednesday shares of the chipmaker rose to a session excessive of about $499 every.

Nvidia inventory has 56 Purchase, 4 Maintain, and 0 Promote rankings.

Ines Ferre is a senior enterprise reporter for Yahoo Finance. Comply with her on Twitter at @ines_ferre.

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