2024-07-26 11:30:36 ET
Summary
- Nvidia Corporation investors have endured a recent bear market after its recent stock split in June.
- I explain why the welcomed pullback shouldn't be construed negatively.
- Nvidia's data center growth rates may slow down, but it's still expected to be highly remarkable.
- Nvidia Corporation's growth-adjusted valuation underscores why the stock isn't overvalued.
- I explain why I bought the recent dip, even as some investors rushed out to protect their gains. Read on.
Nvidia's Outperformance Isn't Built On Hype.
Nvidia Corporation ( NVDA ) investors who chased the recent enthusiasm surrounding NVDA's stock split have been battered. Accordingly, NVDA has plunged into a bear market decline, falling more than 25% from its June highs through this week's lows. Down, but not out, NVDA has still significantly outperformed the S&P 500 ( SPX , SPY ) and its semiconductor peers ( SMH , SOXX ), as the stock notched a total return of almost 150% over the past year. Consequently, I assess that the recent battering should be considered within the framework of a welcomed pullback rather than something more “sinister,” prefacing a potentially debilitating bearish reversal....
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For further details see:
Nvidia Stock: I Bought The Dip, Here's Why You Should, Too