Why Nvidia Could Soar Even Higher in 2024

AI “wealth window” will close January 9, 2024

Sponsored

Hello. I'm James Altucher. I've been called a “genius investor” by my fans… And an “eccentric millionaire” by some others. I think it's because I make big predictions… That tend to come true. Today, I'm making my boldest prediction ever. Next-generation AI technology will create the first $100 TRILLION industry. And there could be trillions available to those investors who get in early. I put together this personal video [HERE]… Revealing the AI stocks I believe… Could turn as little as $10,000… Into $1 MILLION over the next few years. If you get in early, this one-time opportunity could… Potentially change your financial circumstances… For you, your family, and your heirs. Today, I want to show you how I believe… AI 2.0 will open a brief “wealth window”… That will slam shut January 9, 2024. If you've missed out on new tech opportunities before…. I urge you, do not ignore this message. HERE is everything you need now.

P.S. To show you I'm serious about helping you get in on this opportunity, I'm giving away one of my top 5 AI 2.0 stock picks – free. See my top 5 pick here now.


By InvestorPlace

  • Nvidia (NVDA) may be considered a high-growth high-flier, but shares in the AI chip leader are arguably undervalued.
  • A big reason for this is the lingering fear, uncertainty, and doubt about the company’s growth next year and in the years ahead.
  • Yet as a closer look suggests these concerns are unfounded.

Nvidia (NASDAQ:NVDA) stock looks like a high-flier, but it is undervalued. Even as it trades for 40.3 times forward earnings, this valuation represents a discount compared to a fellow high-flier that has become a top AI play among semiconductor stocks. NVDA seems undervalued using an uncommon metric. The market has a legitimate reason to be conservative in valuing this company.

In recent months, Nvidia skeptics have cultivated considerable fear, uncertainty, and doubt about Nvidia’s future growth, particularly the impact of tense U.S.-China relations on future growth. But as I’ll explain below, there’s no reason for you to give into these fears, and pass up on what remains a top long-term growth stock.

NVDA Stock: A Value Play in More Ways Than One

There are two ways in which Nvidia is undervalued relative to other top growth stocks. First, while the stock is up 246.5% year-to-date, outperforming major competitor Advanced Micro Devices (NASDAQ:AMD), it’s AMD, not NVDA, that is the pricer stock.

This valuation gap has widened further, since I last mentioned it in a NVDA stock article earlier this month. AMD’s valuation premium persists, although not only does Nvidia have first-mover advantage in this space. Forecasts still call for similar levels of earnings growth for Nvidia (53.2%) and AMD (56.4%).

Related to this, is the second way in which Nvidia shares are cheap at current prices. Per a recent article in Barron’s, based on its price-to-earnings-to-growth (or PEG) ratio, NVDA is the lowest-priced “Magnificent Seven” stock.

Nvidia’s PEG ratio of 0.72 is considerably less than the respective PEG ratios of the other six “magnificent” big tech names in this category. It is also well below the average S&P 500 PEG ratio of around 2. Again, the market has its reasons for discounting this company’s future growth to such a severe degree, these reasons are not well-founded.

Deconstructing Erroneous Causes for Concern

Those bearish about NVDA stock has latched onto two factors that they believe point to less stellar times ahead for both the company and its shares. First, of course, is the so-called “China dilemma” with Nvidia. As you’ve likely heard, the U.S. Government has cracked down on AI chip exports to China.

Many view the imposition of new export restrictions as something that may have a major impact on Nvidia’s overall growth in the quarters ahead. However, as I discussed last week, the company has figured out two ways to mitigate this headwind.

First, Nvidia is “working on a workaround” with U.S. officials, in order to develop AI chips that it can still sell to Chinese end-users. Second, Nvidia is also expanding its presence across other fast-growing Asian economies, including Malaysia and Vietnam. Yes, it’s not just China that has some investors buying into the “FUD.”

For instance, a report from Edgewater Research arguing that there are “mixed datapoints” for AI GPU demand early next year has been making the rounds. However, take a closer look at the story. It’s clear that not even Edgewater is confident that these “mixed data points” signal a major slowdown ahead.

Bottom Line: Fade the FUD

FUD is definitely causing some frustration for Nvidia stock investors. While shares have moved higher this month, NVDA continues to encounter resistance at prices above $500 per share. Yet while doubts about Nvidia’s growth going forward are preventing a breakout, keep in mind that this works to your advantage.

If you currently own the stock, you can increase your position at what’s still a more-than-reasonable price. If you “missed out” on this AI winner’s initial breakout earlier this year, now’s the time to begin building a position.

Over the next few quarters, continued strong results from the company could propel the stock to considerably higher prices, irrespective of whether shares experience a re-rating to the upside, or if Nvidia merely maintains its current premium-but-not-exactly-pricey earnings multiple.

NVDA stock earns an A rating in Portfolio Grader.

On the date of publication, Louis Navellier had a long position in NVDA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.


Could This $3 AI Stock Make You 100X Richer?

Sponsored

Based on our research, we are at the starting point of the “Next Big Thing.” Bigger than 5G… electric cars… streaming media… and crypto. COMBINED. We're talking about a far BIGGER, $150 trillion opportunity. Folks like Bill Gates, Jeff Bezos, and Warren Buffett are singing the praises of Artificial Intelligence. And while everyone is talking about ChatGPT and NVIDIA… The real opportunity centers on an under-the-radar $3 AI Wonder Stock no one is talking about. We have reason to believe its share price could go ballistic in the coming days and weeks. Will it go up by 10… 25… even 50 times? Time will tell. Click here to get our No 1 AI investment recommendation of the decade.

P.S. Don't invest another dime in NVIDIA, Microsoft, Google, or any of the other big boys. This one has the potential to be 100x bigger than all those – COMBINED. Click here for the full story.

Get Access To Marc Chaikin's "Power Gauge Report"

Enter your email address to access all the details.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

The AI Stocks Every Investor Should Have On Their Radar

Enter your email address to access all the details.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Write This Stock Ticker Down Right Now

Enter your email and phone number below to see the stock name and ticker on the next page.



By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Write This Stock Ticker Down Right Now

Enter your email below to see the stock name and ticker on the next page.



By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Write This Stock Ticker Down Right Now

Enter your email below to see the stock name and ticker on the next page.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Write This Stock Ticker Down Right Now

Enter your email address to see the name and ticker on the next page.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

How to Collect "Amazon Royalty" Payouts Before the Deadline

Thanks to a little-known IRS loophole, regular Americans can collect up to $28,544 (or more) in payouts from what is called “Amazon’s secret royalty program”…
Enter your email address to access all the details.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Elon Musk's "Project Omega"

It could soon mint new millionaires, while plunging millions of unprepared Americans into poverty. Get the stocks at the center of it all.
Enter your email address to receive the names and ticker symbols.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

The #1 Trade For 2023

Elon Musk is set to reveal his secret “Project X” that could revolutionize a $23 Trillion industry, and potentially be 1,000x bigger than EV’s. 
This Backdoor play could hand early investors a windfall of gains.
Enter your email address to receive this company’s name and ticker symbol for free.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Every Investor Should Have This $3 AI Stock On Their Radar

Enter your email address to get access to all the details.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Project An-E

Breakthrough A.I. Just Predicted What the Stock Prices of Tesla, Nvidia, and Apple Will Be 30 Days from Now…
Enter your email address for immediate access.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Elon Musk's "Project Omega"

It could soon mint new millionaires, while plunging millions of unprepared Americans into poverty. Get the stocks at the center of it all.
Enter your email address to receive the names and ticker symbols.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

#1 A.I. Stock Currently Trading For $3

Gain immediate access to this revolutionary $3 A.I. stock that is set to disrupt a $15 Trillion Market soar 75X.
Enter your email address to receive the name and ticker symbol for free.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

#1 Stock of This Generation

Set to disrupt global industries, this tiny $2 stock could very soon shoot up 150%, 400% … even 900% or more!-
Enter your email address to receive this company’s name and ticker symbol for free.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)