But overall, my overall conclusion is that long-term investors like myself can wait for a better opportunity, while swing investors can prepare for a trading window between $125 and $200 (translating into a P/E in the range of about 25x to 40x) in the next 1 or 2 years.Īs mentioned above, there are plenty of positives to be said about the stock. The remainder of this article will weigh the pros and cons more closely. And such a large volume can help to greatly improve cost absorption once the demand picks up again. It recently just reported record data center and gaming volumes. It is planning on introducing a host of new GPU, CPU, DPU, and robotics processors in the near future. Second, the business fundamentals remain strong and growth prospects robust once the contracting phase is over. First, due to the large price corrections, the valuation is much more reasonable now (around 47x P/E as to be elaborated on later). Īt the same time, such a large price correction has deflated the bubble to a large extent and there are many positives to be said about the stock. And both NVDA and AMD’s losses are far worse than the tech sector represented by QQQ. In contrast, its close peer AMD ( AMD ) “only” lost m41 YTD. Since then, its stock prices have plunged by more than 51% YTD and by more than 57% off its recent peak. At the beginning of the year, the stock was trading in bubble territory with a P/E of almost 90x. As a deeply cyclical stock, it responded more violently to the different phases of the business cycle as you can see from the following chart. Priem in January 1993 and is headquartered in Santa Clara, CA.NVIDIA ( NASDAQ: NASDAQ: NVDA) is currently in an interesting spot. The company was founded by Jen Hsun Huang, Chris A. The All Other segment refers to the stock-based compensation expense, corporate infrastructure and support costs, acquisition-related costs, legal settlement costs, and other non-recurring charges.

The Tegra Processor segment integrates an entire computer onto a single chip, and incorporates GPUs and multi-core CPUs to drive supercomputing for autonomous robots, drones, and cars, as well as for consoles and mobile gaming and entertainment devices. The GPU segment comprises of product brands, which aims specialized markets including GeForce for gamers Quadro for designers Tesla and DGX for AI data scientists and big data researchers and GRID for cloud-based visual computing users. It operates through the following segments: Graphics Processing Unit (GPU), Tegra Processor, and All Other. NVIDIA Corp engages in the design and manufacture of computer graphics processors, chipsets, and related multimedia software.

Nvda premarket