NVIDIA's stock price has reached a new high, with the price-to-earnings ratio still below the ten-year average, analysts recommend buying.

AI leader Nvidia ('s stock price has pumped 4.3%, once again reaching a historical high, with a market capitalization of 3.77 trillion dollars, firmly sitting on the throne of global market value. The outlook for AI remains optimistic, and Nvidia still has significant growth potential, with its P/E ratio ) and PEG ( remaining low, and 90% of analysts recommending buying NVDA.

NVIDIA's stock price hits a new high, surpassing Microsoft to become the global market capitalization leader.

Nvidia ) yesterday ( stock price pumped 4.3% to 154.31 USD, setting a historical high for the month, and has risen 63% from the low in April, resulting in an increase of nearly 1.5 trillion USD in its market capitalization.

With the pump on that day, Nvidia became the largest stock in the world, with a market capitalization of approximately $3.77 trillion, surpassing Microsoft's $3.66 trillion.

AI continues to be optimistic, and tech giants are continually expanding their infrastructure.

NVIDIA's recent financial report is a significant catalyst for the bull market, showing strong growth despite the impact of China's advanced semiconductor sales restrictions, and is expected to maintain robust growth in the future. According to supply chain data compiled by Bloomberg, Microsoft, Meta, Alphabet, and Amazon collectively account for over 40% of NVIDIA's total revenue, further highlighting that the company's largest customers are continuing to heavily invest in building their artificial intelligence infrastructure.

At the NVIDIA shareholders' meeting on Wednesday, CEO Jensen Huang assured investors that demand remains strong and reiterated that the computer industry has only just begun a large-scale upgrade of its AI infrastructure.

NVIDIA still has significant growth potential, with 90% of analysts recommending to buy NVDA.

According to some valuation indicators, Nvidia's stock price still appears quite attractive compared to its history. Nvidia's P/E ratio is 31.5 times, lower than its 10-year average, and not far off from the Nasdaq 100's 27 times.

Despite Wall Street's expectation that Nvidia's growth rate will surpass that of the entire technology market, the stock's Price/Earnings to Growth ratio (PEG) is approximately 0.9, the lowest among the seven giants.

Note: Looking at the price-to-earnings ratio alone may make high-growth stocks appear expensive, but if the company's earnings growth is rapid in the future, such a "high price" may be reasonable. PEG is used to adjust for this blind spot.

The combination of high growth and reasonable price-to-earnings ratio is the key reason why Wall Street remains optimistic about its prospects. Among the analysts tracked by Bloomberg, nearly 90% recommend buying the stock, and its price is 12% lower than the analysts' average target price, indicating that most analysts still expect the stock's momentum to continue.

) Jensen Huang initiates NVDA stock selling plan, expected to pocket over 800 million USD this year (

This article states that NVIDIA's stock price has reached a new high, and its price-to-earnings ratio is still below the ten-year average. Analysts recommend buying. It first appeared in Chain News ABMedia.