Nvidia Stock Is a Screaming Buy Based on Its Forward P/E Ratio

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โดย The Motley Fool·Read original
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Nvidia stock is a screaming buy at current levels because its forward price-to-earnings ratio of about 23.5 times is historically cheap and barely above the S&P 500's 22 times forward earnings, despite the company's massive growth. Nvidia's revenue surged 85% in its latest quarter, with Wall Street projecting 96% growth next quarter and 41% next year, yet that growth is not reflected in the valuation. The company expects global data center capital expenditures to rise from around $650 billion this year to $1 trillion in 2027 and $3 trillion to $4 trillion annually by 2030, indicating years of further expansion. Once 2027 projections become clearer, Nvidia's stock could run up significantly, making early investment potentially rewarding.

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