Nvidia hits new high, analysts believe stock price is still "cheap"
Melius Research analyst Ben Reitzes believes that Nvidia is still "undervalued". The analyst rates the stock as "buy" with a target price of $730.
According to Dolphin Research APP, although NVIDIA (NVDA.US) stock has just reached a historic high, it is still considered "cheap".
Reitzes wrote in the report, "We have studied a range of AI-related stocks, and NVIDIA's current P/E ratio is only slightly higher than that of the group." "Can we say that NVIDIA is cheap now?"
The analyst emphasized that the stock price of this graphics chip giant is 28 times the market's profit expectations for 2024.
He added, "This multiple is lower than that of established companies such as Amazon (AMZN.US), Adobe (ADBE.US), and Microsoft (MSFT.US), although NVIDIA's estimate may be the most conservative."
After achieving explosive growth for several consecutive quarters in 2023, NVIDIA has risen 240% so far this year. With the continued hype of artificial intelligence driving up the stock price, the company's second-quarter earnings have exceeded already high expectations.
Such performance has raised questions from analysts: "How high can this stock rise?"
Currently, the highest target price given by Wall Street is $1100 by Rosenblatt Securities analyst Hans Mosesmann.