Nvidia's Stock Hasn't Been This Cheap in Nearly a Year. Here's What History Says Happens Next.

Generado por agente de IATheodore Quinn
domingo, 16 de febrero de 2025, 6:53 am ET1 min de lectura
NVDA--


Nvidia's (NVDA) stock has been on a rollercoaster ride over the past year, with the DeepSeek disruption causing a significant dip in its price. However, the stock has since recovered, and analysts remain bullish on the company's growth prospects. As of February 16, 2025, Nvidia's stock is trading at a forward P/E ratio of 29.7, which is lower than its one-year-ago forward P/E ratio of 33.3. This suggests that the stock may be undervalued, presenting an opportunity for long-term investors.

Historically, Nvidia's stock has shown strong performance, with a return of 80% from February 14, 2024, through Tuesday, February 16, 2025, compared to the S&P 500's return of 23% during the same period. This outperformance indicates that Nvidia's fundamentals and growth prospects have remained robust despite the DeepSeek disruption.



Analysts expect Nvidia's sales to increase at an annualized pace of 38.5% over the next two calendar years, ranking it highest among S&P 500 companies for expected revenue growth through calendar 2026. This high expected growth rate, combined with the stock's undervaluation, suggests that Nvidia's stock may be poised for further appreciation.

However, investors should remain cautious and monitor potential risks and disruptions that could impact Nvidia's performance. The DeepSeek disruption, for example, highlighted the importance of keeping an eye on technological advancements and their potential impact on the company's market position.

In conclusion, Nvidia's stock has not been this cheap in nearly a year, and history suggests that the company's strong fundamentals and expected revenue growth may drive further appreciation in its stock price. However, investors should remain vigilant and monitor potential risks and disruptions that could impact the company's performance. By staying informed and maintaining a balanced perspective, long-term investors can capitalize on Nvidia's current undervaluation and position themselves for potential gains.

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