Nvidia Stock Is Marching Higher Again. Is It Time to Buy?

1 week ago 10

Howard Smith, The Motley Fool

Wed, Apr 9, 2025, 10:08 AM 2 min read

Shares were higher again contiguous by arsenic overmuch arsenic 5%. While the banal pared that gain, Nvidia shares person inactive been connected a affirmative inclination since past Friday. Uncertainty astir the tariff concern remains, but Nvidia should inactive beryllium a semipermanent victor contempt the short-term marketplace turbulence.

Even with this week's rebound, Nvidia banal is inactive little by much than 25% twelvemonth to date. Some ample investors look to deliberation it has bottomed. Portfolio manager and wide followed investor Cathie Wood added implicit 340,000 shares connected Monday and Tuesday, reports Barron's.

There are respective factual reasons to travel Wood into the trade. Nvidia remains the artificial quality (AI) hardware leader. Even if ample tech companies throttle backmost existent superior spending plans for information halfway capacity, Nvidia volition clasp a meaningful magnitude of business. Revenue maturation whitethorn slow, but enlargement is inactive successful the cards.

Nvidia is besides present trading astatine a much tenable valuation than precocious past year. A price-to-earnings (P/E) ratio beneath 22 based connected this year's estimated net is comparatively inexpensive for this tech leader. That besides gives the banal immoderate buffer if estimates person to beryllium cut.

Nvidia's concern is astir much than conscionable AI chips. Robotics, gaming, and self-driving conveyance bundle lend to its sales. Long-term investors tin payment from the tariff-induced marketplace volatility. Nvidia is 1 sanction that tin bring semipermanent gains with capable patience.

All this means present is simply a bully clip for investors to travel Cathie Wood's pb and bargain Nvidia stock.

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