Nvidia will hit a $6 trillion valuation by the end of the year as investors start to realize how cheap the stock is, hedge fund manager says – EVOL

Slaven Vlasic/Getty Images for The New York Times; Chelsea Jia Feng/BI

Nvidia stock is still cheap based on a forward price-to-earnings multiple, according to a hedge fund manager.

Eric Jackson expects Nvidia stock to hit $250 per share by the end of the year, doubling from current levels.

Nvidia’s market cap could hit $6 trillion, bolstered by strong chip sales and investor euphoria.

Nvidia stock is set to continue its wild rally through the end of the year, according to hedge fund manager Eric Jackson of EMJ Capital.

Jackson expects Nvidia stock to hit $250 by the end of the year, representing potential upside of 101% from current levels.

Such a rally, if it materializes, would value the AI-chip company at a stunning $6 trillion.

And it’s all because Nvidia stock is still cheap on a valuation basis, according to Jackson.

“Over the last five years, Nvidia’s average look forward price-earnings multiple has been 40 times. Yesterday, after this two-day correction, it was 39 times forward price-earnings. But there have been three times in the last five years where it’s had a look forward price-earnings multiple of over 50x, and two times in the last five years where it’s gotten just about to 70x and then it pulled

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