Nvidia (Nasdaq: NVDA) The stock has lost steam lately. By entering exchanges on Tuesday, the actions of the popular flea manufacturer were in negative territory for the year, down just under 1%. It is still at the beginning of the year, but for a stock that generated 171% of earnings in 2024, the slowdown is remarkable.
There remains one of the most precious companies in the world with a market capitalization of around 3.3 billions of dollars, but despite its large assessment, there is a case to make so that Nvidia is always an excellent purchase. And on the basis of a measure, it can even be an agreement at the moment.
A multiple that investors often use to assess shares Price to profits (P / e) ratio. This tells you how much a stock is expensive compared to its profitability, on one basis by part. But the multiple p / e can vary depending on the growth of a business of a business and the sector in which it is. P / E Multiple of Nvidia is greater than 50, which seems high, but it can be justifiable if you expect a lot of growth of the company at the bottom of the road.
This is a multiple like the Price / benefit / growth ratioOr PEG, is useful. It is a factor in analysts’ expectations for future growth. If the PEG report is around 1 or less, it is generally an indicator, it is an excellent purchase based on expected growth. According to Yahoo! Finance, the Nvidia PEG ratio, based on its growth rate expected for the next five years, is currently at 0.96, which suggests that it is an agreement given the current prospects of analysts.
Based on his multiple with low PEG, he may be tempting to think that Nvidia has much more upwards. And it could, in the long term. But the PEG report is based on analysts’ estimates, which can change over time. And changes could occur soon, in particular in the midst of growing questions on the question of whether technological companies invest too much in artificial intelligence (AI).
Investors seem to be concerned about technological spending due to the emergence of the Deepseek AI model, which is supposed to be as effective as Chatgpt but costs much less. And if this is the case, investors may wonder if all these Nvidia chips are really necessary for the development of the AI.
Nvidia’s massive growth in recent years has been a key reason for investors who have remained optimistic. And if a slowdown occurs, it could very well have an impact on the stock, which could lead to a sale. Investors will have a better idea of strong demand when Nvidia will publish her income later this month, which could ultimately dictate how hot the purchase is in the coming weeks.
