Nvidia’s stock is experiencing a rare phenomenon – falling stock prices are making its valuation more attractive, according to Bernstein analyst Stacy Rasgon. Shares of the company have lost 8.7% in Monday trading and are down 15% at the start of the year. This decline has led Rasgon to reevaluate Nvidia’s valuation metrics, which are now near 10-year lows.
Rasgon believes that these low valuations make Nvidia’s stock increasingly appealing. The analyst is referencing several key components of valuation that have fallen significantly in recent times. With its shares now trading at a lower price-to-earnings ratio and other valuation metrics, Nvidia’s stock appears to be becoming more attractive to investors.
Source: https://www.marketwatch.com/story/nvidias-stock-is-doing-things-not-seen-in-nearly-a-decade-and-thats-good-news-75a5182b