Nvidia share price is cheap considered the tehnological advancement and demand outstrips supply. new applications are unlocked every time computing power accelerates.
Here's what could slow Nvidia's momentum
Nvidia needs to grow by 70% a year to support its stock price. Nvidia's stock is unlikely to produce the return that exuberant investors are expecting.Nvidia shareholders need a reality check. Nvidia's stock price is currently trading on the implicit assumption of faster growth than even the most optimistic Wall Street analyst is projecting. Nvidia's stock is unlikely to produce the return that exuberant investors are expecting.Pointing this out is not a criticism of the company, whose performance has been nothing short of phenomenal. It's a matter of simple math: How fast must Nvidia grow to support its stock price?A helpful analogy is Qualcomm , one of the highest-flying companies of the dot-com era. Its stock rose 26-fold in 1999 alone. Upon focusing only on how much the company's earnings have grown since then, you might conclude that the high stock price at year-end 1999 was justified. Research Affiliates recently pointed out that, since 199
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