Yahoo Finance
Nvidia's (NVDA) stock isn't having its typical year.
Nvidia stock has fallen in response to earnings in six of the past eight quarters, including the last four, perYahoo Finance AlphaSpaceanalysis.
No major outperformance versus the S&P 500.
Nvidia's stock is up 14% year to date, while the S&P 500 (^GSPC) is up 12%.
No major outperformance versus other key players in the AI chip supply chain.
Micron (MU) shares have gained a sizzling 225%.
Raymond James analyst Simon Leopold lists four reasons the chip king stock is stuck in neutral in a new note: How much more Nvidia can investors own:With a market cap of $5.2 trillion, the market may have a limited appetite for further exposure to Nvidia, Leopold said.
Lack of belief creep:Fear that the AI boom turns to a bust is creeping up, Leopold noted.
Law of large numbers:Decelerating growth is likely to come to Nvidia soon, given how fast it has grown the past two years.
Peak worries:Peaking growth and peaking margin are concerns for Nvidia, Leopold said.
"We have been disappointed with the stock's year-to-date performance with the shares up only 12% largely matching the S&P 500 index," contended Leopold, who rates the stock a Strong Buy.
"The stock trades with a 2027 GAAP P/E [price-to-earnings] ratio of less than 15x, which is below the S&P 500's 18.6x.
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