Of the 62 analysts that FactSet tracks, only 8 look at NVIDIA stocks with a neutral stance
As of now, $NVIDIA(NVDA.US$ It has maintained an almost bullish stance, with the exception of a few individual analysts who are on the sidelines. Of the 62 analysts that FactSet tracks, only 8 look at NVIDIA stocks with a neutral stance.
Eric Jackson (Eric Jackson), founder of hedge fund EMJ Capital, stated on the podcast that “there is a possibility that [the value of NVIDIA] will double again between now and the end of this year.”
Based on this, Jackson believes that there is a possibility that NVIDIA's total market capitalization will rise from about 3 trillion 320 billion dollars now to 6 trillion dollars by the end of this year.
Jackson believes that NVIDIA can reach that level by announcing very strong performance reports in August or November, showing continued demand for H100 and H200 chips, and showing the possibility of a new chip Blackwell specialized in AI.
As a result, investors will want to pay a higher price-earnings ratio (PE) to hold the company's shares, he points out. This is because NVIDIA's predicted PER has reached about 50 times, and the data shows that it is almost 2 times the average PER for the entire market.
“I don't know if the financial results will be in August or November, but I think there is such an optimistic response. If so, it will return to 65 times the expected profit, and NVIDIA shares will trade at $250 per share.” he says.
The rise in NVIDIA shocked investors, and as a result, there are also voices that worry that stock prices have entered the “bubble zone,” and in the internet age $Cisco(CSCO.US$ There are even voices that compare it to. Jackson previously argued that the comparison between NVIDIA and Cisco during the dot com bubble period was unfounded.
“This isn't Cisco in the dot-com era. At that time, Cisco's predicted PER was about 136 times higher during peak times, but NVIDIA was below the average for the past 5 years. In other words, even though stock prices have been doing so well, they are still relatively undervalued compared to past trading levels.” he says.
Also, Jackson is not the only one who is bullish on NVIDIA. KeyBanc analyst John Vinh (John Vinh) wrote the following points that are positive for NVIDIA in this week's client report:
1) Despite the fact that Blackwell's launch is approaching the latter half of 2024, there are no signs that demand will stop;
2) Demand for H100 continues to be strong, and rapid orders continue;
3) Interest and demand for GB200 is greater than initially anticipated.
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