NVIDIA says “it's not expensive” even if it continues to update the highest price in history, Melius Research
This article uses automatic translation for some of its parts
$NVIDIA (NVDA.US)$After the financial results were announced, the stock price rose by nearly 20%,Record high for 3 consecutive daysI did it. What is the company's stock priceOver 130% increase year to dateI did it.
Meanwhile, Melius Research analyst Ben ReitzesI don't think NVIDIA's stock price is expensive。
According to Reitzes, the fundamental reason NVIDIA's stock price continues to rise is performance. The company's EBIT (Earnings Before Interest and Tax) was 69%. Reitzes said that even if NVIDIA's profit margins decline thereafter,Considering the company's huge business scale, profit margins of 60% or more are still “unique”It was stated that it was.
In his report, he stated, “No company will definitely be able to challenge NVIDIA's profit margins for the next 2 years.”
Meanwhile, Mr. ReitzesNVIDIA's stock price is not expensive even after a sharp riseI'm arguing that. He pointed out that after adjusting the growth rate, NVIDIA's PER was 1.1 times higher. This is $Qualcomm (QCOM.US)$ 、 $Broadcom (AVGO.US)$ 、 $Salesforce (CRM.US)$It is far below major chip and software companies such as.
Mr. Reitzes anticipates that NVIDIA's cash flow could reach 240 billion dollars or more over the next 3 years. On top of that, it is also speculated that it would be difficult for the company to carry out large-scale transactions, and there is a high possibility that it will carry out stock buybacks.
At current prices, a share buyback of 200 billion dollarsIt means an 8% decrease in the number of issued NVIDIA sharesReitzes pointed out that they will do it.
According to forward PER calculated from earnings based on market consensus, $NVIDIA (NVDA.US)$What is the forward PER of $Advanced Micro Devices (AMD.US)$ 、 $Intel (INTC.US)$ 、 $Qualcomm (QCOM.US)$It is already higher than other chip design and manufacturing companies, etc.
On the other hand, $Arm Holdings (ARM.US)$Compared to, the company's valuation is still low.
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Source: SeekingAlpha, Bloomberg
This article uses automatic translation for some of its parts
Source: SeekingAlpha, Bloomberg
This article uses automatic translation for some of its parts
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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181588047 : I'm too scared to buy
小鉄1015 : I bought it for 950 dollars. How far will it grow?
ハルジヒロコ 小鉄1015 : It's going to go up even higher
マルエフ : is it going down? will it go up?
マルエフ : are you laughing?
are you going to cry?