https://www.morningstar.com/stocks/this-onetime-market-darling-is-now-surprisingly-undervalued
This Onetime Market Darling Is Now Surprisingly Undervalued
This AI leader qualifies as a GARP stock today.
Key Morningstar Metrics for Nvidia
Fair Value Estimate
: $280
Star Rating
: 4 Stars
Economic Moat Rating
: Wide
Uncertainty Rating
: Very High
Nvidia reports earnings Aug 26. They are expected to be up 30% yoy. Forward PE is down to 19 vs 22 for the typical S&P stock. When reported investors usually sell. So PE falls by 30% or more.
Clearly investors think the glory days of rising earnings are over for AI.
Personally I think they are wrong. Tech stocks are innovative and likely to continue to grow earnings. Some AI companies will continue to do well. Much depends on continuing to grow earnings.
To me dips in AI stocks is a buying opportunity. But you have to pick the right ones.
Here’s the NVDA 16yr CAGR chart:
NVDA’s the only AI stock, that I follow, that’s on its mean CAGR.
ralph
You don’t follow Tesla? It’s an AI stock.
Or some say it is.
Is TSLA riding its mean CAGR?
ralph. Edited my previous post to add CAGR to the last comment.
Edit to add the TSLA 16yr CAGR chart.
Now, that’s interesting.
Is TSLA a back up the truck buy?
Doesn’t it have to go under the bottom CAGR line (-2RMS) to be a back up the truck buy?
Why would you buy Tesla?
What’s the bull thesis?
They have normal auto manufacturer sales and margins.
SpaceX makes contact with aliens and alien venture capitalists make a big investment in Musk-related companies.
intercst
Sounds as plausible as the other ideas.
