Is Nvidia Stock A Better Bargain Than Tesla? Chipmaker's Epic Q2 Faces Investor Caution Ahead Of Powell's Jackson Hole Speech
Portfolio Pulse from Shanthi Rexaline
Nvidia Corp. (NASDAQ:NVDA) shares showed a muted reaction to its outstanding Q2 results as investors were cautious ahead of Federal Reserve Chair Jerome Powell's speech. Nvidia issued an upbeat Q3 guidance, leading to analysts revising their fiscal year 2024 estimates for the company. The current consensus earnings per share estimate for the year is $16.68. The stock's P/E multiple is at 28.28, which is significantly lower than Tesla, Inc.'s (NASDAQ:TSLA) forward P/E multiple of 48.13. Analysts suggest that Nvidia could be a bargain buy and has more room to grow due to the AI revolution.
August 25, 2023 | 6:22 am
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NEGATIVE IMPACT
Tesla's forward P/E multiple of 48.13 is significantly higher than Nvidia's. The company is facing competition from startups and legacy automakers in the EV market.
Tesla's high P/E multiple compared to Nvidia's suggests that the stock may be overvalued. The company is also facing increased competition in the EV market, which could impact its future growth.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Nvidia's Q2 results and upbeat Q3 guidance have led to a revision of FY2024 estimates. The stock's P/E multiple is lower than Tesla's, suggesting it could be a bargain buy.
Nvidia's strong Q2 results and positive Q3 guidance have led to analysts revising their estimates for the company. This, coupled with the company's lower P/E multiple compared to Tesla, suggests that the stock could be a good buy. The ongoing AI revolution also indicates potential for further growth.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100