With a current P/E ratio of 16.74 I see NVDA as being undervalued. NVDA has an EPS of 1.39 and with the sector getting a p/e ratio of about 25 that gives NVDA a 34.75. With Nvidia being a HUGE part of the computer industry, gaming particularly, I think sales will be up and and would command a higher p/e ratio to drive the share price to 36 and greater. On a Technical view 22 a share looks like a decent support level with some resistances at 25 and 27 a share. The 50 day SMA is setting up to cross the 200 day SMA and if that happens the chart would become extremely bullish.
$23.42 (05/22/08)
