NVIDIA Stock Gains Only 10% YTD as Valuation Falls to 5-Year Low; Morningstar Sees $280 Target Price

NVDA-0.83%
AMD-3.29%
MU-7.07%
According to Morningstar analyst Brian Colello, NVIDIA has gained only about 10% year-to-date, significantly underperforming AMD's 140% surge and Micron's 200% gain, causing its valuation to fall to its lowest level in five years. At the current stock price of approximately $212, analysts argue the market has already priced in excessive pessimism about the AI chipmaker's growth prospects. Colello estimates a fair value of around $280 based on 2029 fiscal year revenue projections, suggesting the stock is undervalued given expectations for sustained capital spending from cloud providers and enterprises.
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