Think Nvidia Stock Is Too Expensive and in a Bubble? Here's an Incredibly Cheap Artificial Intelligence (AI) Stock to Buy Before It Jumps Higher
Nvidia stock surged by a massive 276% in the past year as the company rode the booming demand for its graphics processing units (GPUs), which are being deployed by major cloud service providers for training and deploying artificial intelligence (AI) models, but in the wake of that stunning surge, some market watchers have doubts that its rally is going to be sustainable.
There are already concerns that Nvidia stock may be in a bubble. From rising competition to regulatory concerns to a potential decline in the demand for AI chips, there are multiple reasons why that pessimistic view is gaining adherents. And then there's the company's valuation. Nvidia trades at 38 times sales, which is way higher than its 5-year average multiple of 18.
Its trailing price-to-earnings ratio of 78 is also substantially higher than the Nasdaq-100 index's average of 33. Nvidia's ability to sustain its outstanding growth could help it justify these expensive multiples, but conservative investors who are looking for ways to capitalize on the fast-growing AI market may want to look for cheaper options. Taiwan Semiconductor Manufacturing (NYSE: TSM), popularly known as TSMC, fits the bill.
Source Fool.com
Taiwan Semiconductor Manufacturing Co. Ltd. ADR Stock
Taiwan Semiconductor Manufacturing Co. Ltd. ADR is currently one of the favorites of our community with 17 Buy predictions and no Sell predictions.
With a target price of 150 € there is a slightly positive potential of 15.74% for Taiwan Semiconductor Manufacturing Co. Ltd. ADR compared to the current price of 129.6 €.
