Nvidia is still considered cheap and could rise after its earnings report, said Dan Niles, the company’s chief executive. The Niles Investment Management founder said the semiconductor stock-turned-artificial intelligence darling’s stock has surged. But he also noted that Nvidia’s price-to-earnings ratio is still about 15% below its five-year average, leading him to think its stock could rise after the company reports quarterly results Wednesday afternoon. “That’s why my idea is that when they come out with the report, your stocks will go up a little bit,” he said on CNBC’s “Money Movers.” “Because it’s actually historically cheap on a price-to-earnings basis.” NVDA YTD forecasts Nvidia’s performance in 2024 Niles said investors should look to Cisco Systems for guidance during the buildout of the Internet in the mid-1990s How Nvidia will evolve. While Cisco’s stock price soared from late 1994 to 2000, he acknowledged that the company did experience a number of significant declines along the way. With this in mind, Niles said traders should look for a digestion period in Nvidia before the next leg higher. Looking ahead, he said the stock should fall again early next year. Still, the technology-focused investor said artificial intelligence is still in its early stages and will continue to proliferate as profitable companies push the technology forward. But he said market participants should be prepared not to feel like it’s “straight up, because it’s not for the network either.” Additionally, Niles said “everyone on the planet” knew Nvidia was going to release beats and raises. As the artificial intelligence craze remains at the forefront of investors’ minds, Qixiong’s stock has risen more than 90% this year. Analysts surveyed by London Stock Exchange Group (LSEG) on average see 10% upside ahead and give the stock a buy rating.
