Nvidia (NVDA) Stock Is Slipping Today
Nvidia's 1% pullback today follows Morningstar's assertion that the stock is "fairly valued," with two technical analysts cautioning about its shares in statements to Yahoo Finance. The research firm expects the company's revenue growth to slow to 21% during its next fiscal year, citing a potential slowdown in demand for AI chips starting in 2026. This assessment contrasts with Morningstar's fair value estimate of $130.
- The market's increasing scrutiny of valuation multiples and their implications for stock performance may ultimately lead to a more nuanced understanding of the relationship between earnings growth and stock price.
- How will the shift towards more sustainable revenue growth models in tech companies impact investor expectations and valuations in the coming years?