‘A Screaming Buy,' Says Investor About Nvidia Stock
Nvidia (NASDAQ:NVDA) has long been the market's golden child, and the past two months only reinforce that reputation. The stock has surged 38%, catapulting the AI powerhouse back into the ranks of Wall Street's two most valuable companies.
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That momentum is backed by fundamentals. Nvidia's latest earnings report made it clear the company's growth engine is still firing on all cylinders, with promising new revenue streams emerging from GCC markets, particularly Saudi Arabia.
Yet, despite the strong fundamentals, the rapid run-up in the stock price leaves some investors questioning whether now is the right time to buy – or if they've already missed the boat.
Don't fret too much about it, advises one investor, known by the pseudonym Perseus Perspectives, who sees the recent strength as a setup for further upside.
'Nvidia Corporation's valuation is highly attractive, with strong EPS growth and profitability outpacing peers, making it a compelling entry point,' the investor opined.
Backing that view, Perseus points to Nvidia's unmatched fundamentals and CEO Jensen Huang's ability to offset Chinese market restrictions with new international demand. From Saudi Arabia to the UAE and beyond, the investor sees sovereign customers as a powerful and growing revenue source.
Despite the recent rally, Perseus notes that Nvidia's share price has remained relatively flat on a year-to-date basis. In his view, that disconnect from the company's steadily rising EPS suggests the stock still has a meaningful upside ahead.
'As a result of the lack of action in the price, the earnings growth has meant the valuation of the stock looks outright cheap,' adds Perseus. 'Its P/E ratio is very low by the company's own history.'
The investor believes this sets Nvidia up nicely for the second half of 2025 and in the years ahead. In fact, Perseus even mentions a $10 trillion valuation in the next decade as a real possibility.
'The sheer profitability of the company is a marvel and despite being one of the most valuable companies in the world today I think the runway remains in place for years to come,' concludes Perseus Perspectives, who rates NVDA shares a Strong Buy. (To watch Perseus Perspectives' track record, click here)
Wall Street clearly shares the enthusiasm. Out of 40 analyst reviews, 35 say Buy, 4 recommend Hold, and only 1 suggests Sell, giving Nvidia a Strong Buy consensus. The 12-month average price target of $172.36 implies potential gains of 19% from current levels. (See )
To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
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