CONSTANTINOS CHRISTOFI @connos1st: "**🤔 Revisiting NVIDIA? Time to..."

Cyprus

**🤔 Revisiting NVIDIA? Time to sell? ** 📈 NVIDIA continues to surprise with positive earnings, with the stock surging by c. 25% since my last analysis. 📷The picture below indicates that while the stock is now c. 25% pricier, the PEG ratio indicates the company is now roughly 70% more expensive in relative terms. 🔍Despite the increase in valuation NVIDIA seems to remain underpriced relative to the average and market, but the gap is narrowing. 📊A reminder why I chose PEG ratio over P/E ratio as a multiple. I opted out of the traditional P/E ratio as it does not account for the rapid growth of the sector. PEG is essentially the P/E ratio per unit of growth. A lower P/E or PEG ratio means a relatively underpriced company. The method has some drawbacks some of which I list again below for ease. 🚧Drawbacks ➡️The growth rate is very difficult to estimate and sometimes very subjective. ➡️PEG ratio does not account for risk nor reflects that the relationship between P/E and growth is not linear. ➡️Using a single valuation method is NEVER a good idea but it can provide some inside as to the value of the company relative to the competitors and market. ➡️PEG ratio uses Earnings which are forecasted into the future and can also be more easily manipulated by management. 💡 **Decision**: Hold the position unchanged and continue monitoring the sector. I feel the time to sell is getting closer. 💭If you did find some value on the above and/or have any questions and comments regarding the analysis, feel free to comment below and follow me so as to never miss my weekly posts. ⚠️The above should not be treated as investment advice but merely my personal view on the matter. $NVDA NVDA.EXT $ARM (ARM Holdings PLC) ARM.EXT $AMD (Advanced Micro Devices Inc) $SMCI (Super Micro Computer, Inc) $TSM (Taiwan Semiconductor Manufacturing Co Ltd - ADR) $INTC (Intel) $NSDQ100 $MSFT (Microsoft) $VT.US (Vanguard Total World Stock ETF) $SWDA.L (iShares Core MSCI World UCITS ETF)