At what percentage price reduction would it be a good investment to buy Nvidia currently

Determining a specific percentage price reduction that would make Nvidia (NVDA) a good investment depends on several factors, including your risk tolerance, investment horizon, and the company's fundamentals.

1. Fundamentals:

• Financial Performance: Nvidia has reported record quarterly revenue of $26.0 billion, up 18% from the previous quarter and up 262% from a year ago. The company's data center revenue grew by 23%, indicating strong demand in its key market.
• Technical Indicators: The company's technical indicators show mixed signals. The MACD is -5.17, suggesting a Buy according to some analysts. However, the RSI is 36.94, indicating a neutral signal.

2. Market Sentiment:

• Analyst Ratings: The consensus rating is a Strong Buy, with 41 Buy ratings and no Sell ratings. This suggests that analysts are generally optimistic about the stock's future performance.
• Recent Developments: Nvidia's strategic AI leadership and market expansion have been highlighted as positive catalysts. The company's Blackwell architecture remains promising, with several growth catalysts.

3. Valuation:

• Current Valuation: Nvidia's P/E ratio is 68.19, which is considered high and suggests that the stock is overvalued by some analysts. The P/B ratio is 61.28, and the P/S ratio is 27.88, indicating that the stock is trading at a premium compared to its peers.

4. Investment Considerations:

• Risk Tolerance: If you have a higher risk tolerance, you may be comfortable investing in Nvidia at its current price or even at a slight discount. This is because the company has strong growth prospects and a solid financial position.
• Investment Horizon: If you have a longer investment horizon, you may be able to tolerate more volatility in the short term for potential long-term gains.
• Target Price: The average price target from analysts is $772.59, which represents a significant upside from the current price. This suggests that analysts believe the stock has room to grow.

Given the mixed signals from technical indicators and the high valuation multiples, a prudent investor might look for a more substantial price reduction before considering Nvidia as a good investment. This could involve a price drop of around 20-30% from the current levels, bringing the P/E ratio closer to historical norms and aligning with a more conservative valuation.