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Valuation drops to a ten-year low! Jensen Huang calls Nvidia the "world's first growth-value stock", but investors don't seem convinced
Nvidia's price-to-earnings ratio has dropped below 17 times, which is only about half of its projected 2025 level. Although revenue and net profit for fiscal year 2027 are expected to grow by 90% and 99% respectively, the company's stock has risen only about 20% this year, significantly lagging behind the Philadelphia Semiconductor Index. Meanwhile, gross margin is expected to decline from 75% in the second quarter to below 72% in the fourth quarter. Rising memory costs and continued pressure from customers developing their own chips, as well as uncertainty over future AI capital expenditures, have become key factors for the market to reassess Nvidia's valuation.
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Luxury sector profit expectations are "overly optimistic"! Multiple major banks turn bearish within a month, luxury stocks head for worst year since 2008
RBC downgraded LVMH and Burberry ratings to "market perform," stating that luxury goods profit expectations are overly optimistic; the sector has dropped 15% this year, marking its worst performance since 2008.
