MedianLineAnalysis

Nvidia is this sustainable?

NASDAQ:NVDA   NVIDIA CORP
Hello everyone.

So from a fundamental perspective Nvidia has great products and technology, the profit margins are also great. But a 70/1 P/E ratio? Does that seem sustainable? I mean how many years would it take for the P/E to normalize with the price staying the same as it is, to let's say 20/1 which is still high relative to historical standards. Maybe there is something out there that will quadrupple the earnings of this company in a short time.

But let's we what the charts say shall we?

Well from a technical perspective the stock is overvalued, the red middle line is the average of the trend. And as you can see the price is way above the growth average. Pretty much confirming that what the P/E ratio tells us. The problem is in this sort of mania the price could go up even more before eventually going down. It's not safe to short here. Just keeping an eye on this stock is the plan now.

Also it goes without saying, I would never buy a stock at these technical levels and these valuations.

Comments

In a future driven by AI, I want to own some of the company producing the brains. Right now nVidia is still seen as primarily a gaming company, and we can still get shares at a "cheap" price. It's not all about technicals.
Reply
MedianLineAnalysis MatthewSinkgraven
@MatthewSinkgraven, Yes the AI tech from Nvidia is very promising. But the valuation just doesn't seem reasonable. If it's AI you're after you could just as easily invest in Intel which has no hype around it like Nvidia or AMD. And the P/E is a reasonable 15/1.
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out