① Dan Niles said that compared to the leading increase during the internet bubble, Nvidia's stock still has a lot of room to rise; ② He predicts that Nvidia's stock price may double in the next few years.
Financial Services Association, September 11 (Editor Huang Junzhi) Since the second-quarter results report released by “AI leader” Nvidia did not meet “high expectations” last month, the company's stock price has been declining, but some analysts believe that the stock's rise is far from over.
Dan Niles, founder and portfolio manager of asset management company Niles Investment Management, said he is still optimistic about this artificial intelligence giant in the foreseeable future.
In a recent interview, he said that this is because companies are still willing to pay for AI spending, and Nvidia seems to be following the pattern of other companies soaring in the past tech bubble.
“I still believe there's a lot of room. What I'm saying is that in the short term, I think you have to go through a digestive phase. I am convinced that in the next few years, Nvidia's revenue will once again double its current level and its share price will double.” he said.
Niles further explained that Cisco (Cisco), which dominated the Internet bubble in the late 90s of the last century, peaked about 15 times that of 1994, while its stock price soared nearly 4,000% from 1994 to 2000. The company continued to plummet during the bursting of the internet bubble, and its stock price plummeted by about 85% from its highest point to the bottom.
By contrast, Nvidia's stock price has only risen by about 1,500% in the past six years. Niles believes this could mean that the chipmaker has more upside before being affected.
“I went through 2001 and 2002. These things are probably going on longer than you think,” he added.
It's a coincidence. Goldman Sachs also recently stated that Nvidia has been excessively sold off.
The bank said on Monday, “(Nvidia)'s recent performance has not been good, but we are still optimistic about the stock. First, the demand for accelerated computing is still very strong. We tend to spend a lot of time with hyperscale enterprises (Amazon, Google, Microsoft, etc.), but you'll see that demand is expanding to a wider range of businesses, even sovereign countries.”
Bank of America also said a few days ago that the sharp drop in Nvidia's stock price in the past week provided an attractive buying opportunity. Also, most people on Wall Street are still optimistic about the chipmaker's outlook for the next few quarters, especially given that the company seems ready to launch the next generation of Blackwell artificial intelligence chips.
According to NASDAQ data, analysts' average price target is $153.24 per share, which means the stock still has 42% room to rise from current levels.
