Insights

Is It Time to Buy Low on This Big Tech Stock?

Recently, Nvidia (NASDAQ: NVDA) has seen a lot of downgrades from analysts due to short-term consumer spending worries. In this Motley Fool Live segment from “Ask Us Anything,” recorded on April 12, Fool.com contributor Jose Najarro takes a look at different options investors have for buying into this stock right now. 

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Jose Najarro: For a company that’s trading so high and like Dave mentioned Nvidia’s training at very high valuations because of these growth opportunities. But with huge growth opportunities come a lot of, I want to say downside in my opinion, where any slip-up can really cause the stock-price to tumble and I think that’s what we’re seeing with Nvidia here. This is a company that’s priced for perfection. Recently we’re seeing a lot of downgrades from analysts due to short-term consumer spending worries. This is a company that was priced to perfection. Now that we’re seeing a lot of downgrades, maybe it’s not a company that we should, in theory, price to perfection. We’ve seen it down, I think over 27 percent year-to-date.
At the end of the day, I think these are more short-term worries. If I was still worried about high valuations for me, I enjoy just the dollar-cost averaging method or just splitting up my purchases over time. For example, I feel like if I have a big position in Nvidia, but if I didn’t, I would personally enter at these levels knowing that, this stock price can continue to go down so I’m not going to throw my whole bowl of cash at this moment because there is that possibility that 2, 3 weeks from now, it might even be at a more attractive price. I’d rather just get some skin in the game and keep some extra cash to be able to, if it keeps going lower and lower, keep entering into it. But with the way the market and consumer talks are happening, I wouldn’t be surprised many more downgrades come for the semiconductor industry in the short-term of time.
Jose Najarro owns Nvidia. The Motley Fool owns and recommends Nvidia. The Motley Fool has a disclosure policy. –

Recently, Nvidia (NASDAQ: NVDA) has seen a lot of downgrades from analysts due to short-term consumer spending worries. In this Motley Fool Live segment from “Ask Us Anything,” recorded on April 12, Fool.com contributor Jose Najarro takes a look at different options investors have for buying into this stock right now. 

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Jose Najarro: For a company that’s trading so high and like Dave mentioned Nvidia’s training at very high valuations because of these growth opportunities. But with huge growth opportunities come a lot of, I want to say downside in my opinion, where any slip-up can really cause the stock-price to tumble and I think that’s what we’re seeing with Nvidia here. This is a company that’s priced for perfection. Recently we’re seeing a lot of downgrades from analysts due to short-term consumer spending worries. This is a company that was priced to perfection. Now that we’re seeing a lot of downgrades, maybe it’s not a company that we should, in theory, price to perfection. We’ve seen it down, I think over 27 percent year-to-date.

At the end of the day, I think these are more short-term worries. If I was still worried about high valuations for me, I enjoy just the dollar-cost averaging method or just splitting up my purchases over time. For example, I feel like if I have a big position in Nvidia, but if I didn’t, I would personally enter at these levels knowing that, this stock price can continue to go down so I’m not going to throw my whole bowl of cash at this moment because there is that possibility that 2, 3 weeks from now, it might even be at a more attractive price. I’d rather just get some skin in the game and keep some extra cash to be able to, if it keeps going lower and lower, keep entering into it. But with the way the market and consumer talks are happening, I wouldn’t be surprised many more downgrades come for the semiconductor industry in the short-term of time.

Jose Najarro owns Nvidia. The Motley Fool owns and recommends Nvidia. The Motley Fool has a disclosure policy.

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