Over the last 3 months, NVIDIA shares are positive, while Qualcomm and ARM Holdings are down.
[Analyze These Ideas: Access a performance overview for all stocks in this article]The latter companies are trading lower because investors already expect a bright future for mobile chips. ARM trades with a forward P/E of 42 , compared to 19 for NVIDIA and 15 for Qualcomm. Conclusion NVIDIA is fairly valued, with a P/E of 15.5 and $6 in cash per share. Growth is expected to be 12% annually over the next 5 years. The company pays a dividend that yields 2.08%. Shares settled at $14.42 recently, but could trade lower as sentiment in markets continues to be negative. NVIDIA is a compelling company to consider as shares trade lower.
Written by Chris Lau, Kapitall Contributor