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
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
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04-27-24 0607ET
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