Think Nvidia's Stock Price Is Too High? Maybe Not, According to 1 Wall Street Analyst
At its current share price of $888, Nvidia (NASDAQ: NVDA) stock costs more than 3 times what it did a year ago. It's up 238%, to be precise, and now sells for a seemingly outrageous 37 times trailing sales.
And yet, if you ask the bankers at Raymond James, $888 isn't an unreasonable valuation for Nvidia stock at all. And Nvidia stock could hit $1,100 within a year.
Nvidia shares may cost 3x what they did a year ago, but the stock is actually down 7% from highs hit three weeks ago, when the stock was approaching $1,000. Why? Nvidia may be a victim of its own success, as investors worry artificial intelligence customers will hold off on buying Nvidia's current H100 chips in hopes of buying the company's next generation of Blackwell chips, which are expected to be 4 times as powerful.
Source Fool.com
