The timing may be just right to buy Nvidia or -2-

   Monolithic Power Systems Inc.                      MPWR           46.1                      34.0                             36%                           105%                  36% 
   Entegris Inc.                                      ENTG           34.8                      25.1                             39%                           125%                  75% 
   Qualcomm Inc.                                      QCOM           15.5                      11.1                             39%                           103%                  39% 
   Advanced Micro Devices Inc.                        AMD            35.5                      25.5                             40%                           101%                  73% 
   Texas Instruments Inc.                             TXN            32.0                      22.6                             41%                           136%                  -1% 
   ASE Technology Holding Co. Ltd. ADR                ASX            15.6                       9.9                             57%                           135%                  49% 
   Broadcom Inc.                                      AVGO           24.0                      14.8                             62%                           153%                  98% 
   Analog Devices Inc.                                ADI            28.9                      17.2                             68%                           135%                   5% 
   Marvell Technology Inc.                            MRVL           38.9                      22.9                             70%                           135%                  67% 
   Microchip Technology Inc.                          MCHP           29.0                      12.4                            135%                           183%                  17% 
   Micron Technology Inc.                              MU            21.3                       N/A                             N/A                           111%                  88% 
   Wolfspeed Inc.                                     WOLF            N/A                     237.1                             N/A                            N/A                 -59% 
                                                                                                                                                                        Source: FactSet 

Nvidia's forward P/E has declined the most over the past year, even as its share price has nearly tripled. Its forward P/E has declined because rolling 12-month EPS estimates have increased more rapidly than the share price has. And Nvidia's stock's current P/E is 76% of its five-year average P/E. It is one of only seven stocks on the list trading below their five-year averages by this measure.

Read: Nvidia stands to benefit as Meta spurs an even greater AI spending spree

Micron Technology Inc. (MU) is near the bottom of the list despite a relatively low forward P/E because a year ago there was no forward P/E ratio; at that time the company's 12-month EPS estimate was negative.

Here's the list again, this time sorted by projected sales CAGR from 2023 through 2025, based on consensus estimates among analysts polled by FactSet, adjusted by the data provider for companies whose fiscal years don't match the calendar.

   Company                                           Ticker   Two-year estimated sales CAGR through 2025  Two-year estimated EPS CAGR through 2025 
   Nvidia Corp.                                       NVDA                                         51.9%                                     57.4% 
   Micron Technology Inc.                              MU                                          41.1%                                       N/A 
   Wolfspeed Inc.                                     WOLF                                         31.2%                                       N/A 
   Broadcom Inc.                                      AVGO                                         23.4%                                     17.1% 
   Taiwan Semiconductor Manufacturing Co. Ltd. ADR    TSM                                          21.4%                                     21.2% 
   Advanced Micro Devices Inc.                        AMD                                          19.9%                                     44.7% 
   Monolithic Power Systems Inc.                      MPWR                                         16.0%                                     17.3% 
   ASML Holding NV ADR                                ASML                                         13.8%                                     21.4% 
   Rambus Inc.                                        RMBS                                         13.8%                                     18.4% 
   Teradyne Inc.                                      TER                                          11.9%                                     26.8% 
   Marvell Technology Inc.                            MRVL                                         11.3%                                       N/A 
   ASE Technology Holding Co. Ltd. ADR                ASX                                          10.5%                                     33.0% 
   Lam Research Corp.                                 LRCX                                          9.0%                                     13.6% 
   Qorvo Inc.                                         QRVO                                          8.5%                                       N/A 
   United Microelectronics Corp. ADR                  UMC                                           8.5%                                     -3.3% 
   Intel Corp.                                        INTC                                          8.3%                                     45.1% 
   Qualcomm Inc.                                      QCOM                                          8.1%                                     14.2% 
   KLA Corp.                                          KLAC                                          7.8%                                     12.6% 
   Applied Materials Inc.                             AMAT                                          6.7%                                      9.9% 
   MKS Instruments Inc.                               MKSI                                          5.7%                                       N/A 
   Axcelis Technologies Inc.                          ACLS                                          5.1%                                      6.5% 
   Entegris Inc.                                      ENTG                                          4.9%                                     30.2% 
   NXP Semiconductors NV                              NXPI                                          3.3%                                      5.9% 
   Skyworks Solutions Inc.                            SWKS                                          1.8%                                      2.3% 
   STMicroelectronics NV ADR                          STM                                           1.4%                                     -6.8% 
   Texas Instruments Inc.                             TXN                                           1.1%                                     -5.5% 
   ON Semiconductor Corp.                              ON                                          -0.6%                                     -1.6% 
   Lattice Semiconductor Corp.                        LSCC                                         -0.6%                                     -5.7% 
   Analog Devices Inc.                                ADI                                          -5.1%                                     -8.1% 
   Microchip Technology Inc.                          MCHP                                         -6.2%                                    -11.1% 
                                                                                                                                   Source: FactSet 

As always, you should do your own research to form your own opinion before making any investment. One way to begin that process is to click on the tickers.

Click here for Tomi Kilgore's detailed guide to the wealth of information available for free on the MarketWatch quote page.

The projected EPS growth rates are market "N/A" if EPS were negative during calendar 2023.

If you believe Nvidia is still on the early part of its growth trajectory, as it dominates the market for graphics processing units being installed by data centers to support corporate clients' development of artificial intelligence technology, this might be a good entry point for the stock.

Don't miss: Nvidia and AMD stand out on this new list of Wall Street's 20 favorite stocks

-Philip van Doorn

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04-27-24 0607ET

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