Shulou(Shulou.com)11/24 Report--

CTOnews.com, June 2, according to ctee, with the rise of generative AI, Nvidia's share price soared for days, and its market capitalization exceeded 1 trillion US dollars on May 30 (CTOnews.com Note: about 7.1 trillion yuan), but some analysts believe that Nvidia's share price is still on the low side at this stage.

Reported that Nvidia shares rose more than 31% in three consecutive trading days. In 30 days, it became the first semiconductor manufacturer in the world with a market capitalization of more than 1 trillion US dollars. According to the report, Wall Street's estimated earnings ratio of Nvidia is about 45 times, which is not higher but lower than the 62 times two weeks ago, because the financial forecast for the second quarter released by Nvidia on May 24 far exceeded the forecasts of Wall Street analysts. A number of investment institutions have sharply raised their profit forecasts for Nvidia.

Nvidia said revenue in the second quarter of this year could reach $11 billion (CTOnews.com Note: currently about 78.1 billion yuan), exceeding Wall Street analysts' forecasts by 50 per cent. Huang Renxun pointed out that Nvidia is facing unprecedented demand for AI chips and is working to improve supply capacity.

Wall Street recently raised its second-quarter earnings per share forecast to $2.05 (currently about 15 yuan) and raised its full-year earnings per share forecast by 71% to $7.75 (currently about 55 yuan). A number of institutional forecasts show that Nvidia's target share price is about $450m (currently about 3195 yuan), and CTOnews.com notes that as of press time, Nvidia's shares are trading at $397.7 (currently about 2824 yuan).

Stacy Rasgon, an analyst with Bernstein, an investment research firm in New York, said in an interview with CNBC that Wall Street has raised its target share price in recent days because previously estimated profit expectations are too low. At present, there are still different voices among investors, such as Ark Investment CEO Cathy Wood and others said that Nvidia is overvalued and has now entered the bubble stage.

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