TECH - Nvidia Is Cheapest Route To Invest In AI Says Bernstein Analyst After Stock Triples In A Year | Benzinga
The sky-high valuations of NVIDIA Corp (NASDAQ:NVDA) may give investors pause, but according to a senior analyst, the chipmaker’s stock will continue to soar.
What Happened: Despite concerns about Nvidia’s high valuations, Bernstein’s senior analyst Stacy Rasgon told CNBC on Wednesday that the company’s stock is expected to keep rising. The chipmaker’s stock recently hit record highs, becoming the fourth most valuable company in the S&P 500, according to a report by Business Insider.
Rasgon, who has a price target of $700 for Nvidia, believes that the artificial intelligence trend will continue to drive the company’s performance. He pointed out that Nvidia’s last earnings report showed a 279% increase in revenue from the previous year.
Despite the rapid rise in stock price, Rasgon considers Nvidia’s multiples to be highly attractive, making it one of the cheapest ways to invest in the AI theme in the space. He noted that other companies in the same space, such as Advanced Micro Devices, Inc. (NASDAQ:AMD) and Marvell Technology Inc (NASDAQ: