According to Dan Niles, Nvidia is still considered cheap and could rise after its earnings report. Shares of the semiconductor company that has become the darling of artificial intelligence are up, according to the founder of Niles Investment Management. But he also noted that Nvidia is still about 15% below its five-year average price-to-earnings ratio, which makes him think the stock could see upside when the company reports quarterly results Wednesday afternoon. “That’s why my thoughts are: you understand [a] “Because it’s actually historically cheap on a price-to-earnings basis.” NVDA line since the beginning of the year. Nvidia results in 2024. Niles said investors should look to Cisco Systems during the Internet’s rise in the mid-1990s for guidance on how Nvidia might move forward. While Cisco’s stock soared from late 1994 to 2000, he acknowledged that the company had some significant downturns along the way. With that in mind, Niles said traders should expect digestive periods in Nvidia shares before the next rally, he said the stock is expected to see another decline early next year. However, the technology-focused investor said AI is in its early stages. However, he said market participants should be prepared for the fact that it won’t look like a “straight up step because it’s not for the Internet either.” Planet knows Nvidia will publish an offer and raise the price, Niles said. Shares of the Magnificent Seven are up more than 90% this year as the artificial intelligence craze remains a focus for investors. The average analyst surveyed by LSEG forecasts upside potential of another 10% and recommends a buy.
