Nvidia stock is a bargain at its current price
I am most concerned about $NVIDIA Corp(NVDA)$ '
It's hard to find fault with the analysts' position. When Nvidia reported the results of its fiscal 2024 fourth quarter (ended Jan. 28), the company spent a record $2.46 billion on research and development (R&D), capping off a year in which the company spent $8.68 billion on R&D -- also a record.
Much has been made about the looming competition as rivals scramble to develop a better, faster, more robust AI processor. However, Nvidia has a long track record of staying ahead of the competition, and -- thanks to its ongoing heavy spending on R&D -- that's unlikely to change anytime soon.
Furthermore, Nvidia is currently selling for 74 times trailing 12-month earnings. Wall Street expects Nvidia to generate earnings per share (EPS) of $24.46 in 2025 and $29.82 by 2026. If the analyst's price target is accurate, that would shrink the company's price-to-earnings (P/E) ratio to 48 next year and 39 the year after, which suggests Nvidia stock is a bargain at its current price.
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- TigerBull·03-21OverpricedLikeReport