Nvidia: Won't Be This Insanely Cheap For Too Long (NASDAQ:NVDA)
Nvidia remains deeply entrenched in the AI ecosystem, with its moat sustained by hardware-software co-design and aggressive ecosystem seeding. Despite intensifying competition and custom chip programs by hyperscalers, NVDA's market share in AI inferencing has strengthened, defying bearish media narratives. NVDA trades at just under 20x forward earnings, only slightly above the semiconductor sector average, reflecting steep market skepticism about its growth durability. The market appears to be mistaken about Nvidia's incredible moat, its robust free cash flow, and its revenue diversification strategies. I believe the time to double down is now, as dip buyers have also returned after several weeks of selling. Nvidia (NVDA) is up 'just' about 24% over the past year. Not too bad, right? But when compared to its semiconductor peers as listed in their corresponding ETFs.
Source: Seeking Alpha