Investors Don't Seem to Believe Nvidia's Earnings Story
Dow Jones
1 hour ago
Nvidia-looking to beat analysts' already high expectations for the 15th quarter in a row-may be in league of its own in tech. But Wall Street sure isn't acting like it.
The forward price to earnings ratio for shares of the world's most valuable company is dragging behind chip-makers and other large tech players, perhaps because of concerns about financing risks, long-term revenue generation, or expectations that are just too high.
"Nvidia is on track to grow as fast if not faster than Intel and AMD, and their market position is stronger," said Gil Luria, head of technology research at D.A. Davidson. But "the market is treating it as if 'No, no, these numbers are so big, there's no where they can grow from here.'"
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