NVDA - Nvidia's Path Forward: Weighing The Bull And Bear Cases
2024-03-11 14:39:53 ET
Summary
- NVIDIA Corporation's bull case lies in the compelling growth story and strong competitive advantage.
- The bear case lies in the uncertainty of supply and demand, and I detail the factors underlying that uncertainty.
- The path forward is uncertain, but one fact remains: Nvidia is an incredible business and a triumph of American capitalism.
Prelude
When a stock chart looks like that of NVIDIA Corporation (NVDA), investors rightfully become wary of purchasing additional shares. Clearly, the best time to buy recently was mid-2022, but that was before the ChatGPT launch and a time of intense fear of recession. It was anything but clear at the moment.
Many analysts, myself included, didn't even believe in the first leg of the rally. In one of my worst recommendations since joining Seeking Alpha, I told readers to sell the irrational exuberance in May 2023. Nvidia stock is up 130% since that article.
I made the classic mistake of using backward-looking valuation metrics to analyze a company with mouth-watering growth prospects. By November 2023, I flipped my opinion . I covered NVIDIA Corporation ((NVDA)) again, this time with a Buy recommendation, and the stock has been up 80% since then....
Nvidia's Path Forward: Weighing The Bull And Bear Cases