SpaceX IPO Countdown: It’s just 2 weeks until Elon Musk’s space giant goes public. And that means the Pre-IPO window is closing quickly. |
Simply go here to secure Pre-IPO shares today. |
Let’s talk about Nvidia (NASDAQ: NVDA). |
The stock is up just 16% this year. Compared with triple digit gains for numerous other semiconductor chip stocks. |
The company is on track to earn more than $116 billion in profits this year — the most any company has ever earned in a single year. |
And yet the stock looks cheap. |
Here's the math. |
Nvidia trades at about 22 times earnings expected over the next 12 months. |
That's more than a 40% discount to its own historical valuation. It's also about 5% below the broader PHLX Semiconductor Index — even though Nvidia, as the fast-growing leader, has typically traded at a big premium to that index. |
This chart shows that Nvidia is trading at a historically low forward price-to-earnings multiple. |
Get My #1 Pre-IPO for 2026 (go here) |
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Since the start of 2025, Nvidia has actually trailed the chip index by more than 70 percentage points. The market got distracted — chasing CPUs, memory, and custom chips like Alphabet's TPUs — and seems to have forgotten the company at the center of it all. |
I think that's a mistake. |
The whole bull case rests on one idea: the AI computing boom is just getting started. And the evidence says we're early. |
The four big hyperscalers — Amazon, Alphabet, Meta, and Microsoft — are now expected to spend nearly $700 billion on AI infrastructure in 2026. At the start of the year, that number was closer to $500 billion. Looking into 2027, total capex could exceed $1 trillion. |
And they can afford it. Those four companies are expected to generate roughly $800 billion in EBITDA this year, with essentially no net debt. |
Demand signals keep pointing the same direction. Vertiv reported a 252% jump in Q4 orders. Memory is expected to stay tight through 2027. Just 20% of smartphone users have tried an AI agent app — a number that could approach 100% within three years. |
As for NVDA shares, Wall Street's average price target is $270 — about 20% above recent levels near $226. If Nvidia simply traded in line with the chip sector's average multiple, it'd be a $290 stock. |
If Nvidia traded at its historical P/E multiple – the share price would be around $380. |
The company has beaten sales estimates every quarter recently. And GPUs remain the heart of nearly every AI system being built. |
Personally, I own Nvidia shares. The stock is just too cheap. And that’s why I’ll be buying more shares. |
In addition to buying Nvidia, the SpaceX Pre-IPO is the most obvious trade for today. And most folks remain on the sidelines – waiting for June 12. |
Here’s how to invest – before it starts trading. |
Ian Wyatt
Editor, Daily Profit |
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