Nvidia (NVDA) Will Sell Everyting It Can Produce This Year, Well-Known Analyst Says

“Nvidia will sell everything it can get out the door this year,” predicted Stacey Rasgon, a renowned chip analyst with Bernstein, during a recent interview on CNBC. Rasgon also suggested that the valuation of NVDA is attractive at its current levels.

A close-up of a colorful high-end graphics card being plugged in to a gaming computer.

NVDA Is Benefiting From Strong Demand, Rasgon Says

Nvidia’s revenue will only be limited by supply constraints, the analyst stated. He added that investors are “the only ones” worried about the demand for AI chips, while the biggest buyers of the chips keep increasing their capital expenditure forecasts, and their capex requirements are also increasing.

The Valuation of NVDA and Its Peers Is Attractive, Rasgon Suggests

If analysts’ average estimates “are anywhere close” to accurate,  the valuations of most AI chipmakers, including NVDA, Broadcom (AVGO), and Marvell (MRVL) “are pretty attractive,” Rasgon said. He added that, for anyone who believes that AI will be in a continuous uptrend going forward, the valuations of these names are “incredibly attractive.”

The Recent Price Action of NVDA Stock

In the last month, NVDA has fallen 6%, while it has dropped 19% in the last three months.

While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as NVDA but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.