Nvidia Buy Amid Undervaluation Despite High Price

3 months ago

Parkev Tatevosian, CFA

"And before that I bought Uber and then earlier in the year I bought Nvidia. I still feel all of those stocks are undervalued. And the most surprising one might be Nvidia. You might think Nvidia stock is overvalued because the share price has increased by so much. But the big difference between Nvidia's share price increase and some of the other ones I mentioned like Tesla, Tesla's stock price has been increasing based only on hope and enthusiasm about what they will maybe do in the future. Whereas Nvidia's stock price has been increasing based on the profits and cash flow that they're delivering right now today. They already have these products in the market that are already generating tens of billions of dollars in revenue and profit."

The speaker explains Nvidia's price rise is underpinned by strong current profits and cash flow, contrasting it with Tesla's more speculative growth. He indicates confidence in Nvidia's fundamentals, highlighting its ability to generate significant revenue and profit as a catalyst for a potential buying opportunity.

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