Nvidia Shares Dip 10% Amid AI Bubble Fears; Analysts See Undervalued Opportunity

April 22, 2024
Nvidia Shares Dip 10% Amid AI Bubble Fears; Analysts See Undervalued Opportunity
  • Nvidia's stock experienced a 10% decline to $762.00 due to fears of an AI bubble burst.

  • Despite the drop, analysts suggest Nvidia may be undervalued based on revenue and cash flow projections.

  • Investors are advised to consider shorting out-of-the-money put options to capitalize on high premiums.

  • Nvidia has seen over 200% revenue growth in data center, AI, and ML sectors in the fiscal year 2024.

  • The introduction of the H200 Tensor Core GPU is anticipated to positively influence Nvidia's stock value.

  • Company insiders hold a significant share, indicating their interests are closely tied to those of the shareholders.

  • The stock is recommended as a buy, with shorting OTM puts as a strategy for entering at a lower price while earning income.

Summary based on 13 sources


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