Benzinga - by Shanthi Rexaline, Benzinga Editor.
Nvidia Corp. (NASDAQ:NVDA) has pulled back from record high levels in recent sessions and yet has been a standout among stocks. An analyst on Thursday compared the stock with an American collegiate basketball legend.
What Happened: “Nvidia is the Caitlin Clark of the stock market,” said Charlie Bilello, Creative Planning’s Chief Market Strategist.
The comparison came in the wake of Creative Planning‘s CEO Peter Mallouk sharing a chart comparing the points scored and assists by Clark and 9,718 Division 1 college hoops players this season.
The star basketball’s performance was a cut above the rest, going by the plotting. “That green dot in the far upper right corner is Caitlin Clark,” Mallouk said.
Bilello drew a parallel between Nvidia and Clark by plotting the past 10-year stock performances and earnings per share growth of S&P 500 companies. In terms of stock performance, Nvidia outshone all others by a mile. Over the past 10 years, the stock has returned about 2,070%.
Incidentally, newbie S&P 500 stock Super Micro Computer, Inc. (NASDAQ:SMCI) was a distant second.
In terms of earnings per share, Starbucks Corp. (NASDAQ:SBUX), T-Mobile US, Inc. (NASDAQ:TMUS) and Amazon, Inc. (NASDAQ:AMZN) had greater earnings per share growth over the ten years but their stock performances paled before Nvidia’s.
Nvidia is the Caitlin Clark of the stock market. $NVDA https://t.co/obtDQ9ZExB pic.twitter.com/x5X8PYc5mQ— Charlie Bilello (@charliebilello) April 12, 2024
The average analysts’ price target for Nvidia, based on data compiled by TipRanks, is $989.53, with the highest price target at $1,400. The average price target suggests scope for nearly 10% upside over the next 12 months.
Nvidia’s earnings growth in fiscal 2024 was an astounding 586%, thanks to strong sales of its high-performance chips that power AI applications, inference and training, as well as its mouth-watering margins.
The stock has added about 83% for the year to date. In premarket trading on Friday, the stock slipped about 0.55% to $901.21, according to Benzinga Pro data.
Read Next: Ahead Of Chip Earnings, Analyst Turns More Bullish On Nvidia And These Semiconductor Stocks On Robust AI Demand
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