Parkev Tatevosian, CFA: Stock Analyses & Picks

The analyst believes Nvidia is an attractive buy due to its improving valuation, with fundamental prospects (revenue, profits, cash flow) growing faster than its stock price. He highlights new product launches like the Vera CPU and RTX Spark Superchip, which are expected to gain market share and provide a double benefit by taking share from competitors. Additionally, he forecasts significant share buybacks over the next 5-10 years, which could drive stock price appreciation even without market cap growth.

“Nvidia remains, in my opinion, one of the most attractive opportunities in the market right now, one of the 12 best opportunities, in my opinion. I've ranked Nvidia as one of the top 12 stocks you can buy right now.” — ▶ Watch clip

The analyst recommends buying Nvidia due to its superior revenue growth, higher operating profit margins, and strong future forecasts compared to Broadcom. Despite its strong performance, Nvidia is trading at a lower forward price-to-earnings multiple (21x) than Broadcom (31x), suggesting it is undervalued. He also calculated a fair value of $308 per share compared to the current market price of $219.

“I would rather buy Nvidia stock at these prices. I think Nvidia is the better company compared to Broadcom, and at the same time Nvidia is selling at a lower price.” — ▶ 10:00

The analyst rates Broadcom as a buy, noting its strong operating profit margins and significant revenue growth, although not as strong as Nvidia. He calculated a fair value of $498 per share, which is above its current market price of $419, indicating it is undervalued, especially after a recent post-earnings pullback.

“Broadcom stock looks undervalued to be sure. Similarly, I calculated a fair value for Nvidia stock and my conclusion is that Nvidia is worth about $308 per share compared to the current market price of $219 per share.” — ▶ 08:00