#3 - Nvidia (NASDAQ:NVDA)
Nvidia (NASDAQ: NVDA) Do investors rush in where speculators fear to tread? That’s the question regarding Nvidia which is looking like a stock that analysts are saying has some short-term challenges ahead of it. One of the reasons for the speculative money that went into the stock was its use in mining Bitcoin. That market seems to be drying up and with it, some of the speculative investors. Other near-term issues for the company include sagging demand for its graphics processing units as one of their core audiences, gaming enthusiasts, are turning towards gaming consoles like the Xbox One X that gives them a high-powered alternative. They are also experiencing weaker than anticipated demand in China, which is a recurring story for many U.S. tech companies in light of the current trade war. And their latest product, the Turing, has so far had an underwhelming response in the market. None of these may be long-term issues for the company, but there's no question that the stock is currently overvalued. It has a P/E over 30 and its market cap number $125.6 billion is greater than 13 times last year's revenue.
About NVIDIA
NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.
Read More - Current Price
- $134.70
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 40 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $164.15 (21.9% Upside)
