EMJ Capital’s Eric Jackson says Nvidia’s forward price-to-earnings ratio and market cap could soar by year-end
Nvidia Eric Jackson of EMJ Capital says the company is ready to continue its frenzied growth. The hedge fund manager expects its forward price-to-earnings ratio to be close to 70 by the end of the year and its market capitalization to rise to $6 trillion, at $250 per share.
“It’s an ambitious plan,” the company’s founder and president told CNBC’s “Closing Bell” on Tuesday, adding that the excitement hasn’t caught up yet. He believes “high” valuations in the second half of 2024 will reflect euphoria when sales of Blackwell chips begin to increase and future releases of next-generation Rubin chips raise expectations.
“No one can catch them,” he continued. “We’re still years away from getting there. They’re going to capitalize on the lead they have.”
The chipmaker’s shares were up about 6.8% in Tuesday’s trading session, with its forward price-to-earnings ratio at 47.47. The stock is up 154.6% this year.
“Our share price is below its average over the past five years, so despite the outperformance, the stock is still relatively cheap compared to where it has traded in the past,” he said.
— Sean Conlon
Stock futures little changed
Stock futures were little changed on Tuesday after the S&P 500 rebounded from three consecutive sessions of losses.
Futures tied to broad market indexes fell 0.06%. Nasdaq 100 futures fell 0.02%, and Dow Jones Industrial Average futures fell 62 points, or 0.1%.
— Brian Evans
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