Nvidia Shares Dip 10% Amid AI Bubble Fears; Analysts See Undervalued Opportunity
April 21, 2024
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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Sources

The Globe and Mail • Apr 21, 2024
Nvidia Stock Looks Too Cheap Here - Put Premiums are Very High and Worth Shorting
The Globe and Mail • Apr 21, 2024
Nvidia Stock Looks Too Cheap Here - Put Premiums are Very High and Worth Shorting
The Motley Fool • Apr 21, 2024
Stock-Split Watch: Is Nvidia Next?
Seeking Alpha • Apr 21, 2024
Why I Think Nvidia Will Continue Returning Value In The Long Run