Analysts believe Nvidia’s stock pause won’t last long
- Nvidia stock has fallen back from above $500 after stellar earnings
- Analysts at Melius Research believe the stock’s pause won’t last long
- Melius analyst has a Buy rating and $750 target price on Nvidia, implying over 50% upside
- Nvidia’s stock fallback looks similar to what happened with Apple in 2009
- Nvidia shares trade at a cheaper earnings-per-share multiple compared to peers like Apple and Microsoft
- Nvidia’s networking and software revenue expected to show growth and margin expansion potential
- Average target price for Nvidia is $667 according to FactSet
Nvidia stock has experienced a temporary setback after posting impressive earnings. However, analysts at Melius Research are confident that this pause in the stock’s upward momentum will be short-lived. With a Buy rating and a target price of $750, Melius analyst Ben Reitzes predicts a potential upside of over 50% for Nvidia. Reitzes draws parallels between Nvidia’s current situation and Apple’s growth trajectory in 2009, suggesting that the market may soon recognize the value of Nvidia’s services revenue in addition to its hardware sales. Compared to peers like Apple and Microsoft, Nvidia shares are trading at a cheaper earnings-per-share multiple. This indicates that the market is currently discounting an expected peak in sales and focusing on the sustainable growth rate for Nvidia’s artificial-intelligence chips. Reitzes also highlights the potential for growth and margin expansion in Nvidia’s networking and software revenue. While some analysts remain cautious about the stock’s valuation, the average target price for Nvidia is $667 according to FactSet. Overall, analysts are optimistic about Nvidia’s long-term prospects and expect the stock to continue its upward trajectory.
Public Companies: Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT)
Private Companies:
Key People: Jensen Huang (CEO), Ben Reitzes (Analyst at Melius Research), Dave Sekera (Chief U.S. Market Strategist at Morningstar)
Factuality Level: 7
Justification: The article provides information about Nvidia’s stock performance and analysts’ opinions on its future prospects. The information seems to be based on the analysts’ assessments and opinions, which may have some bias. However, the article does not contain any misleading or inaccurate information, and it does not include any irrelevant or repetitive details. Overall, the article appears to be factually accurate and informative.
Noise Level: 3
Justification: The article provides a brief analysis of Nvidia’s stock performance and includes opinions from analysts. However, it lacks in-depth analysis, evidence, and data to support the claims made by the analysts. The article also includes some irrelevant information about Nvidia’s CEO mentioning the ‘iPhone moment’ and a request for feedback on text-to-speech technology.
Financial Relevance: Yes
Financial Markets Impacted: Nvidia stock
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the stock performance and future prospects of Nvidia, a major technology company. While there is no mention of an extreme event, the information provided is relevant to financial markets and companies.
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