Nvidia's Stock Deemed 'Frothy,' Analyst Predicts Impending Price Decline: 'Very, Very, Very Hard To Maintain'
Portfolio Pulse from Benzinga Neuro
Sarah Kunst, managing director at Cleo Capital, expressed concerns about the sustainability of NVIDIA Corp's (NASDAQ:NVDA) stock price, citing its high price-to-earnings ratio of 97 as indicative of a potential bubble. Despite the AI boom driving Nvidia's stock up, Kunst believes the valuation is unsustainable. Nvidia's market cap has surpassed that of Alphabet and Amazon, but experts like Josh Brown and investor Cathie Wood show caution, with Wood reducing Ark Invest's stake in Nvidia.
February 16, 2024 | 4:50 am
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NVIDIA Corp's stock price sustainability is questioned by analyst Sarah Kunst due to a high P/E ratio, despite the AI boom driving its rise.
The high price-to-earnings ratio of 97 for NVDA, as pointed out by Sarah Kunst, suggests an overvaluation that could lead to a price correction. The skepticism from experts and actions by influential investors like Cathie Wood, who reduced her stake, further support the potential for a short-term negative impact on NVDA's stock price.
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