TSLA - Nvidia's Stock May Be Near Its Peak As Revenue Growth Slows
2024-06-17 11:42:39 ET
Summary
- Nvidia Corporation may experience a period of multiple contraction if growth slows, leading to a decline in stock value.
- Historical examples like Tesla and Netflix show how growth rate affects stock value through multiple expansion and contraction.
- If Nvidia's growth rate decreases as projected, its market cap could decline significantly based on price-to-sales metrics.
If analysts' estimates for future sales growth are correct, then Nvidia Corporation's ( NVDA ) will likely see a period of sharp multiple contraction . This isn't to imply that the company's revenue won't continue to grow, but history shows that investors are willing to pay more for faster growth and less for slower. ...
Nvidia's Stock May Be Near Its Peak As Revenue Growth Slows