TECH - 'Hot Runner' Nvidia To Hit Speed Bump In Second Half This Year? Here's What A Market Strategist Says | Benzinga
High-flier Nvidia Corp.’s (NASDAQ:NVDA) rally has got the Street excited, with a bullish analyst issuing a Street-high forecast for the stock earlier this week. But at least one analyst has chosen to take the cautious route amid the stock’s gravity-defying climb.
Cautious on Nvidia: The prospects for Nvidia are phenomenal but they are predicated on the company maintaining 70% gross margins and on its ability to grow at a long-term compounded annual growth rate of 45% per year, said Thomas Hayes, Chairman and Managing Member at Great Hill Capital, in an interview with Channel News Asia.
The investment advisor said that the 45 to 50 times earnings multiple at which the stock currently trades might be a little overdone in the short term.
The recent spike could be attributable to retail investors, who apparently got carried away by the lower price following the stock split although the value is the same, he said. He expects the short-term strength to fade away.
Hayes is positive about the company’s long-term potential but cautioned regarding up-and-coming competition for AI accelerators and government inquiries on its ...