Time to Start Buying Nvidia Shares Again?

Core Viewpoint - The stock market has recently corrected nearly 10% due to incoming tariffs, federal spending cuts, and geopolitical tensions, creating uncertainty for investors. However, buying opportunities are emerging, particularly for Nvidia, which is trading at a compelling valuation [1][2]. Valuation Analysis - Nvidia's stock has fallen 15% since the beginning of the year, leading to a forward price-to-earnings (P/E) multiple of 25x for next year's earnings and 20x for 2027 earnings, significantly below its 10-year median forward earnings multiple of 45.1x [4]. - The PEG ratio for Nvidia, which accounts for forecasted earnings growth, is just below 1, indicating an attractive valuation based on projected annual EPS growth of 25.6% over the next three to five years [5]. Earnings Forecasts - Analysts have recently raised earnings estimates for Nvidia by as much as 5.3%, resulting in a Zacks Rank 2 (Buy) rating for the company [6]. Technical Analysis - Nvidia's stock has remained flat over the last eight months, but it has reached a confluence of technical levels that suggest a potential buying opportunity. The price is at the bottom of a six-month range and within a broader one-year channel, indicating a logical entry point for buyers [8]. Investment Consideration - Given Nvidia's reasonable valuation, strong earnings growth forecasts, analyst upgrades, and favorable technical indicators, it is considered a compelling investment opportunity. A strategy of purchasing shares now with plans to buy more if the stock declines further may be prudent [9].