tech
Here's our advice on Nvidia, the frustrating stock that looks cheaper by the day
It's clear that Wall Street's earnings estimates for Nvidia are too low. So is the stock price.
TL;DR
- Nvidia has restarted manufacturing of its H200 AI chip for the Chinese market, with approval from both U.S. and Chinese governments.
- The company is also developing a modified AI inference chip for China.
- China represents a $50 billion market opportunity for Nvidia, with recent developments suggesting potential sales that were not previously factored into earnings estimates.
- Nvidia's initial $1 trillion revenue forecast for 2025-2027 excludes sales of new CPUs, Groq-infused chips, and storage systems, with analysts suggesting the total could reach $1.5 trillion.
- Despite positive news, Nvidia's stock price has remained stagnant, leading to a more attractive price-to-earnings valuation compared to previous periods and the S&P 500.