NVDA

Well, I've had the opportunity to digest Nvidia's recent results, press release, conference call with Wall Street analysts, income statement, cash flow statement, balance sheet , etc. I have updated the company's discounted cash flow assessment and revised my rating of it .

Remember, prior to this quarterly investor update, I upgraded Nvidia stock to my top buy. So I was very pleased to see the share price jump by about 10% after the company announced these results.

In an unexpected move characterized by transparency, Nvidia revealed additional details about the financial arrangements it is making with some of its partners and customers. I felt it was really important for investors to look into these details to better understand the situation, as it was one of the biggest risks that Nvidia stock investors pointed out, namely the risks of circular financing arrangements.

So, for those that don't know, because Nvidia makes the best AI chips in the world and the US controls what Nvidia is allowed to sell to China, we've seen restrictions come into place banning the export of the most powerful chips to China.

Trump approved limited H200 sales to China in December. That started in small amounts in February. There was a catch. The US is imposing a 25% tariff on these chips destined for China. So, it's also worth noting Nvidia's newest chips, which is Blackwell and the upcoming Rubina architecture, they're still completely off-limits to China.

Nvidia. Let's look To Nvidia. I think that Nvidia is a great stock on The long term.

You can Seeing how Nvidia She has provocative behavior This is interesting. I have The stock rose wildly from April or the end of March, Reaching a tremendous rise To more than $230 For the stock by May. then, The stock experienced a decline. Primarily acute. So, this was a reaction exaggerated. upward momentum Very large, followed by a decline .

For this reason, the first stock I want to add to the list is Nvidia. Now, Nvidia is almost at its all-time high of around $231.63. It saw a good rise before it fell back down.

As for me, Nvidia, as I mentioned, we'll take a quick look at the rating, to show why I think it's very cheap. That's right, we now see Nvidia with a forward price-to-earnings ratio approaching 19. That's crazy.

In particular, especially since they stated in their latest earnings report that they expect 70% growth next year due to supply constraints. If they didn't have supply constraints, their customers would have expected growth to double next year. Therefore, there is a huge opportunity and a massive appetite that the entire AI world cannot satisfy due to certain bottlenecks in the supply chain.

It is the manufacturing partner for companies such as Nvidia and AMD.

Last but not least, Nvidia, which estimated its fair value at $339. The current market price is $219, so I have calculated an increase of approximately 55% for Nvidia stock over the next 12 to 18 months.