NVIDIA Corporation (NASDAQ:NVDA) has seen a 18% share price growth on the NASDAQGS over the past few months, leaving investors wondering if there’s still an opportunity to buy at its current price. With analysts covering the stock, any significant price-sensitive announcements may have already been factored into the price.
However, NVIDIA’s intrinsic value is $101.43, 35% lower than its current share price of US$137. This suggests that the buying opportunity has disappeared for now. Nevertheless, NVIDIA’s high beta indicates that its share price can be volatile, potentially leading to a lower price in the future.
Looking ahead, NVIDIA’s profit is expected to more than double over the next couple of years, driven by higher cash flow and a potential increase in share valuation. This optimistic outlook may have been factored into the current price, making it less attractive for investors who believe the stock should trade below its fair value.
For shareholders, selling high and buying back in when the price falls could be profitable, but it’s essential to review whether NVIDIA’s fundamentals have changed. For potential investors, now may not be the best time to enter the stock due to its surpassed true value. However, diving deeper into other factors can help identify opportunities for a future price drop.
Source: https://finance.yahoo.com/news/now-opportune-moment-examine-nvidia-130026474.html