All articles tagged with #forward estimates
Nvidia is set to report Q2 earnings; analysts expect about 97% revenue growth to $92.2 billion. The stock has risen modestly over the past year and trades at roughly 23.6x forward earnings, near the S&P 500. Historically, forward estimates have moved higher after earnings, which could make Nvidia look cheaper on a forward basis and keep the stock attractive regardless of the immediate post-report move.
Bernstein analyst Stacy Rasgon suggests that Nvidia's stock, which has surged 231% this year, may actually be a bargain and a "AI budget buy." Despite the impressive stock performance, Rasgon believes that the returns have been disappointing and that the stock is undervalued. Nvidia's forward estimates have quadrupled this year as generative AI has boomed, while multiples have compressed. Rasgon sees appeal in Nvidia's valuation, with the stock trading at a mid-teens forward price-to-earnings multiple, its lowest since the cryptocurrency implosion in 2019. He acknowledges concerns about sustainability but remains bullish on Nvidia's long-term opportunity.