Nvidia is still a cheap stock, this fund manager says

Murray Wealth Group CEO and CIO Bruce Murray says Nvidia (Nvidia Stock Quote, Chart, News, Analysts, Financials NASDAQ:NVDA) remains a core AI holding despite its size and strong past performance.

Speaking on BNN Bloomberg’s Market Call on Oct. 2, Murray compared buying Nvidia today to buying General Motors in 1920, saying the company is dominating a major new technology cycle with the best-performing AI chips, while competitors remain in catch-up mode.

“This is a company that’s probably growing at 50% to 100% for the next couple of years,” Murray said.

The investor noted that the stock trades at roughly 20 to 30 times earnings, while revenue is forecast to grow about 73% this year.

“This is a company that’s probably growing at 50% to 100% for the next couple of years,” Murray said.

Nvidia still looks inexpensive relative to its growth profile and should remain strong until the AI boom peaks, which he believes could be seven to 10 years away.

“This is a stock that’s cheap for what it does,” Murray said.

Asked about Amazon moving US$8-billion of Nvidia chips off its balance sheet into a special purpose vehicle, Murray said the chips are likely older models.

The portfolio manager argued that newer chips can be significantly more productive than those from two or three years ago, but older Nvidia chips may still be valuable for customers that do not need the latest performance.

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