Hedge-fund Manager Says Nvidia Will Hit a $6 Trillion Valuation by Year-end
Hedge fund manager Eric Jackson has made a bold prediction regarding Nvidia’s stock performance, forecasting that it will reach $250 per share by the end of the year. This projection implies a potential upside of over 100% from its current trading levels, positioning Nvidia to achieve a remarkable $6 trillion valuation. Jackson, who utilises a proprietary AI and machine learning-driven algorithm at EMJ Capital to pick long and short tech equities, believes Nvidia’s historic rally will continue throughout the year.
Nvidia’s Impressive Market Rally
Nvidia shares have led the market rally this year, soaring over 150% year-to-date. The company executed a 10:1 stock split this month, with shares closing at $123.99 on June 27. This stock rebound follows a significant price correction earlier in the week that saw Nvidia lose over $400 billion in market value due to a 16% drop. Despite this setback, Jackson maintains that Nvidia is trading cheaply based on its valuation metrics.
Jackson highlighted Nvidia’s price-earnings (P/E) multiple trends over the past five years, noting that the average forward P/E multiple has been 40 times. Following the recent correction, the forward P/E was 39 times. Historically, Nvidia’s P/E multiple has exceeded 50 times on three occasions and approached 70 times twice, indicating potential for further growth. “We just haven’t seen that euphoria yet,” Jackson told CNBC, suggesting that investor excitement could propel Nvidia’s valuation closer to its historical peaks.