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NVIDIA Stock: Overvalued or Fairly Priced?
29 Nov
Summary
- NVIDIA stock price recently pulled back 14.5% in one month.
- Analysts project NVIDIA's Free Cash Flow to reach $287.49 billion by 2030.
- DCF analysis suggests NVIDIA shares are approximately 7.0% overvalued.
NVIDIA's stock performance has recently experienced a notable pullback of 14.5% over the past month, following a robust year-to-date increase of 28.0%. This fluctuation is largely attributed to the intense interest surrounding artificial intelligence developments and new product launches from major technology firms, which have boosted investor confidence.
Despite recent market movements, future projections remain optimistic. Analysts forecast a substantial rise in NVIDIA's Free Cash Flow, anticipating it to reach $287.49 billion by 2030, driven by ongoing innovation in AI and computing hardware. This outlook is a key factor influencing investor sentiment.
However, valuation analyses present a more nuanced picture. A Discounted Cash Flow (DCF) model suggests that NVIDIA's intrinsic value is approximately $165.42 per share, indicating that the stock is currently around 7.0% overvalued. While considered 'about right' by some metrics, this valuation gap warrants investor attention.
