“I don’t own Nvidia (NVDA), but this is the first time I’m really starting to look at (Nvidia)” stock, prominent CNBC contributor Stephanie Link said on the channel today.
Link suggested that NVDA would rebound significantly over the longer term, and she noted that she had been buying more shares of one of NVDA’s rivals, Broadcom (AVGO).
Link Suggests That Nvidia’s Valuation Is Attractive for Long-Term Investors
Nvidia is changing hands for 20 times analysts’ average forward estimates, Link noted. And although analysts’ estimates will likely drop 8% to 9% due to writedowns that the firm preannounced today, historically the shares’ forward price-earnings ratio has not dropped below 23 times, the investor stated.
Nvidia is “not out of the woods, but it is a high-quality company, and it’s the number one in the industry,” said Link, adding that the shares have dropped a great deal and “there is a price for everything.”
The investor concluded her remarks on NVDA by saying that “When the dust settles, people go back to the number one or two in any industry.”
Why Link Bought More AVGO Stock
“I like the diversity of Broadcom,” the investor explained. She noted that Nvidia, unlike Broadcom, is “a pure play on AI.”
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Disclosure: None. This article is originally published at Insider Monkey.