Nvidia’s (NASDAQ: NVDA) stock is on track to erase some losses from its recent drop, jumping 4.8% in early trading today. The chipmaker and artificial intelligence specialist has been boosted by several positive developments.
Positive news for Nvidia includes a report that Microsoft bought more Hopper chips than its competitors, potentially putting pressure on rivals to increase spending. Additionally, Nvidia announced the Jetson Orin Nano Super, its most affordable generative AI supercomputer yet, priced at $249.
Despite some concerns about Nvidia’s valuation, with earnings currently trading at 53 times, analysts believe the stock is a bargain considering its historical price-to-earnings ratio of 59 times. The company’s growth trajectory also suggests it could be undervalued.
However, investors should note that The Motley Fool Stock Advisor recently identified only nine other stocks as suitable for investment, with Nvidia not included on the list. If you invested $1,000 in Nvidia at a previous recommendation period, your investment would have grown to $799,099.
Source: https://finance.yahoo.com/news/why-nvidia-stock-rallied-wednesday-173250054.html