According to the Smart Finance app, EMJ Capital hedge fund manager Eric Jackson believes that NVIDIA (NVDA.US) stock price will continue to soar by the end of this year. Jackson predicts that by the end of this year, the stock price will reach $250, representing a potential upside of about 98% from the current level. If this upward trend materializes, the valuation of this artificial intelligence chip company will reach a staggering $6 trillion.
Jackson believes that all of this is because NVIDIA's current valuation is still relatively cheap. In an interview on Tuesday, he stated, &#34;Over the past five years, NVIDIA's average forward P/E ratio has been 40 times. After two days of adjustments, its forward P/E ratio is now 39 times. However, in the past five years, there have been three times when the forward P/E ratio exceeded 50 times, and two times when it retraced near 70 times.&#34; &#34;Therefore, we have not yet seen that kind of excitement.&#34;
Jackson bets that as investors begin to focus on NVIDIA's profit potential in 2025 and 2026, the excitement may drive NVIDIA far above its average forward P/E ratio and close to its peak.
Jackson said, &#34;This is a hot stock that has been consistently high. Poor financial reports may reset people's expectations, but good news will also trigger excessive enthusiasm. Despite the significant rise in the stock, investors' excitement has not caught up based on the forward P/E ratio.&#34;
NVIDIA's stock price has surged by 151% year-to-date, and this chip manufacturer reached the highest market value in the world last week, with a valuation of about $3.3 trillion.
Jackson said, &#34;I believe that in the second half of this year, people will begin to see strong sales of Blackwell chips, with high gross margins, and start considering the upcoming Rubin chips. I believe we will start to see this excitement reflected in a high forward P/E ratio multiple, and if this happens, the company could reach a $6 trillion market value.&#34;
Jackson also believes that NVIDIA has a significant competitive advantage compared to its competitors and will leverage this advantage in the coming years. Furthermore, Jackson also stated that comparing today's NVIDIA to Cisco during the internet bubble era is unfounded.
Jackson pointed out, &#34;This is not the Cisco of the internet era. Cisco's P/E ratio at that time reached as high as 136 times, while NVIDIA is currently below the average level of the past five years. Therefore, despite NVIDIA's outstanding performance, it is still relatively cheap compared to past trading situations.&#34;
Even with the significant rise in the stock over the past year, Jackson is not the only one on Wall Street who remains bullish on the stock. Constellation Research and Rosenblatt have set NVIDIA's target price at $200, while Bank of America recently reiterated a target price of $150.
While Wall Street believes that NVIDIA's long-term prospects remain good, it does not mean that a sharp decline can be avoided. Earlier this week, NVIDIA's market value shrank by over $400 billion, and the stock price fell by 16% for three consecutive days

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Hedge fund manager Eric Jackson believes that NVIDIA's stock price is expected to double by the end of this year, reaching $250, with a valuation of $6 trillion. He thinks NVIDIA's current valuation is cheap, and investors' excitement has not caught up yet. Jackson predicts that investors will start paying attention to NVIDIA's profit potential in 2025 and 2026, which will drive its stock price far above the average forward P/E ratio and close to its peak. NVIDIA's stock price has already risen by 151% this year, making it one of the world's most valuable companies. NVIDIA will launch the Blackwell chip and Rubin chip in the second half of the year, which Jackson believes will further drive the stock price up

- EMJ Capital's hedge fund manager, Eric Jackson, predicts a continued surge in NVIDIA's stock price, expecting it to reach $250 by year-end, indicating a potential 98% increase from the current level, potentially valuing the AI chip company at a staggering $6 trillion. Jackson attributes this projection to NVIDIA's relatively cheap valuation compared to historical metrics, anticipating investor excitement to drive the stock well above its average forward P/E ratio towards its peak. Despite the stock's impressive performance, analysts like Constellation Research and Rosenblatt maintain bullish outlooks, setting target prices at $200, while cautioning about potential significant downturns despite the positive long-term prospects.
- NVIDIA's stock has soared 151% year-to-date, briefly becoming the world's most valuable company last week with an estimated value of around $3.3 trillion. Jackson highlights the robust sales of Blackwell chips and the upcoming Rubin chips' potential profitability as factors that could further elevate investor enthusiasm, potentially leading to a $6 trillion market cap. Comparing NVIDIA to Cisco during the dot-com bubble era, Jackson emphasizes NVIDIA's current relatively lower valuation despite its stellar performance, suggesting room for further growth.
- While Jackson remains optimistic about NVIDIA's competitive edge over rivals and its future prospects, recent market fluctuations, like the stock shedding over $400 billion in value earlier this week with a 16% decline over three consecutive days, underscore the volatility and risks associated with the stock, as acknowledged by Wall Street analysts who maintain positive long-term outlooks tempered with caution.

Hedge Fund: NVIDIA is still very cheap, the stock price could double by the end of the year