Nvidia is currently valued at a forward P/E of 47x, which does not scream overvaluation, but this may change if growth decelerates in the foreseeable future.
So why hasn't Buffett invested in Nvidia? It's easy to see why so many investors are still bullish on Nvidia. However, Buffett famously avoided tech stocks throughout most of his investing career, saying that he preferred evergreen businesses that generated predictable long-term returns.
NVDA sits at a Zacks Rank #2 (Buy), holds a Momentum Style Score of A, and has a VGM Score of B. The stock is down 5.9% and up 1.2% over the past one-week and four-week period, respectively, and Nvidia has gained 148.4% in the last one-year period as well.
Despite this strong growth, the stock remains undervalued, with its current P/E ratio below its five-year median of 68.61, indicating substantial potential for further gains in 2025.
The good part is that Nvidia is expected to clock annual-earnings growth of 52% for the next five years. Based on the company's fiscal 2025 earnings-per-share estimate of $2.84, its bottom line could jump to $23 per share after five years. The stock currently has a forward-earnings multiple of 45.
As of today (2024-12-20), NVIDIA's share price is $133.7996. NVIDIA's Peter Lynch fair value is $64.88. Therefore, NVIDIA's Price to Peter Lynch Fair Value Ratio for today is 2.06.
5-years: A $1,000 investment in Nvidia five years ago has compounded at 96.6 percent annually and would be worth $29,378.39 today. 10-years: A $1,000 investment in Nvidia 10 years ago has compounded at 78.1 percent annually and would be worth $321,459.94 today.
Nvidia stock — after splitting 10-for-1 early in June — could rise from $100 to $1,000 by 2026. This optimistic scenario assumes Nvidia keeps beating growth expectations and raising its forecasts — resulting in a 248% annual increase in the company's stock price over the next two years.
The AI chip behemoth continues to be a stock market leader and has an ideal Earnings Per Share Rating of 99, while the stock also shows all-around strength with a Composite Rating of 98. According to FactSet data, Nvidia ranks first among S&P 500 companies for revenue and earnings growth estimates through 2026.
Vanguard owns the most shares of Nvidia (NVDA).
However, a closer look at its returns in the past decade tells us that it may have made some investors millionaires during this period. For instance, an investment of just $3,700 made in Nvidia stock a decade ago is now worth just over $1 million.
NVIDIA long term debt for 2022 was $10.946B, a 83.53% increase from 2021.
Intrinsic Value. The intrinsic value of one AMZN stock under the Base Case scenario is 133.94 USD. Compared to the current market price of 218.94 USD, Amazon.com Inc is Overvalued by 39%. What is Intrinsic Value?
The main competitors of NVIDIA include Broadcom (AVGO), Texas Instruments (TXN), Micron Technology (MU), Analog Devices (ADI), Marvell Technology (MRVL), Intel (INTC), Microchip Technology (MCHP), Monolithic Power Systems (MPWR), First Solar (FSLR), and Skyworks Solutions (SWKS).
Most investors think Nvidia is way overvalued. But that's hardly the case… Yes, it's trading at 39X forward earnings, which is certainly not cheap. Because although Nvidia stock price has surged, its expected profits have surged even faster.
Experts are generally positive about NVIDIA Corporation, recognizing its dominance in the AI and semiconductor sectors. They acknowledge the company's strong growth and ability to meet high expectations, despite concerns about valuation and potential cyclical nature of the semiconductor industry.
We believe Nvidia will reach a $10 trillion market cap by 2030 or sooner through a rapid product road map, it's impenetrable moat from the CUDA software platform, and due to being an AI systems company that provides components well beyond GPUs, including networking and software platforms.
Buying $100 In NVDA: If an investor had bought $100 of NVDA stock 10 years ago, it would be worth $11,959.69 today based on a price of $461.83 for NVDA at the time of writing.
Your original $10,000 would have purchased 42 shares of NVIDIA. After a cumulative 40-1 stock split, you would have 1,680 shares today. At a current price of $142 per share, your investment would be worth around $238,560. This is growth of around 2,200% to 2,300%.
Here's your answer: If you'd invested $1,000 in shares of Tesla at the beginning of 2015, you'd have a stake worth $27,615 a decade later. That's an average annual gain of around 39%, more than triple the S&P 500's average annual gain of 12%.
1 Wall Street Analyst Says Nvidia Is a "Must Own" Because of This "Once-in-a-Lifetime Opportunity" Nvidia stock has tripled over the past year, which is making some investors nervous. Its Blackwell AI chip launch, later this year, is expected to be the biggest in Nvidia's history.
But Nvidia's low P/E to growth ratio suggests it remains undervalued. Table with 5 columns and 8 rows. According to the analyst consensus for 2025 earnings, Nvidia has a P/E of 31 using 2024's closing price. But those same analysts are projecting that Nvidia earnings will grow 52% in 2025.
The Peter Lynch fair value calculation assumes that when a stock is fairly valued, the trailing P/E ratio of the stock (Price/EPS) will equal its long-term EPS growth rate: Fair Value = EPS * EPS Growth Rate.
NVIDIA Corporation (US:NVDA) has 6640 institutional owners and shareholders that have filed 13D/G or 13F forms with the Securities Exchange Commission (SEC). These institutions hold a total of 17,696,391,132 shares.