Consequently, I am upgrading my rating to Hold/Neutral, with an eye focused on purchasing a stake under $100 per share in the coming months. Today, enthusiasm for NVIDIA by investors is finally shrinking back toward a normal range, as is the valuation on much weaker-than-expected results.įor long-term investors still optimistic on computer graphic chip demand, new artificial intelligence applications, burgeoning robotics in the world, autos and EVs of all types turning into supercomputers, plus all the rest of new-age inventions served by NVIDIA, it is getting late in the downcycle to sell. government prohibitions on Chinese sales, and slowing demand in a spreading recession (especially from the PC market). Then more bad news hit shares this summer, including falling demand from a cryptocurrency mining-related crash, a peak in gaming interest for high-speed graphic chips, U.S. Seeking Alpha - Paul Franke, August 4th, 2022 Article Seeking Alpha - Paul Franke, November 8th, 2021 Article Seeking Alpha - Paul Franke, May 17th, 2021 Article Mathematically, the rebalance of earnings and cash flow yields with a completely different investment discount rate backdrop has been a painful process for overexcited bulls. A secondary negative factor was quickly rising inflation and interest rates created a situation where price had to decline in a snapback fashion. Each effort was a bearish valuation call, disregarded by the vast majority of readers during a boom in the semi space, largely caused by transitory COVID-19 shortages. I have posted 3 bearish articles over the last 17 months on NVIDIA ( NASDAQ: NVDA), a leading semiconductor growth name, suffering from a mania valuation overshot of any and all reality.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |