From the all-time high to the present, Nvidia shares fell about 12%, so its market capitalization fell to around USD 3 trillion and it was no longer the largest company in the world. Nevertheless, Investors should not lose optimism, much less.
Eric Jacksonhedge fund manager at EMJ Capital, commented that Nvidia shares could soar 100% up to USD 250 by the end of the year, which would take the Market value at USD 6 trillion. The reason? The low valuation of the company.
“Over the last five years, Nvidia’s average expected price-earnings multiple was 40 times. Yesterday, after this two-day correction, it was 39 times. But there were three times in the last five years when it had a multiple of more than 50 times, and twice in the last five years it reached almost 70 times and then fell back, so we haven’t seen that euphoria yet.”Jackson said in conversation with CNBC.
The executive believes that as investors begin to focus on Nvidia’s potential for 2025 and 2026, the euphoria would increase its future price-earnings ratio to a level well above the historical average.
“It is a time of great success and expectations can change when there are bad results, but they can also be overvalued when there is good news. And even though the stocks had a great advance, the euphoria has not yet been reflected in the multiple of future earnings”Jackson noted.
The fund manager estimated that, in the second half of the year, Investors will start to notice how well Nvidia’s Blackwell chips are selling and how good the gross margins they generate are, which will spark optimism about the next-generation Rubin platform.
“At this corner, I think we’ll start to see that euphoria reflected in a high future price-earnings multiple, and if that happens, this could reach a market cap of $6 trillion.”Jackson predicted.
Invest in Nvidia
In Argentina you can Invest in Nvidia quickly and easily. All you have to do is open a client account in a brokerage company regulated by the National Securities Commission such as Bull Market Brokers, a free process that will not take more than five minutes, and, after depositing the desired funds, acquire Cedears.
The Cedears or Argentine Certificates of Deposit They are instruments that are equivalent to buying the underlying stock listed abroad (NASDAQ: NVDA), but they can be operated in pesos (BCBA: NVDA) and follow the evolution of the CCL dollar, so they allow you to avoid the Argentine risk and, at at the same time, hedge against a possible exchange rate jump.
