So far, 2023 has been the year of artificial intelligence in the stock market. Nvidia Corp. has been the poster child, with shares returning 178% this year with dividends reinvested. Believe it or not, analysts working for brokerage firms as a group still believe it is a good time to buy the stock, as you can see in the results of the screen below.
On Monday we took a hard look at valuations for Nvidia’s NVDA shares, while comparing returns on invested capital for 60 semiconductor manufacturers. This is now an expensive stock, based on price-to-earnings and price-to-sales ratios, however, the company has been a solid financial operator for years.
Altogether, the five ETFs hold 269 stocks listed around the world. Narrowing down the list, there are 199 companies with market capitalizations of at least $2 billion that are covered by at least five analysts working for brokerage firms polled by FactSet.
Alibaba Group Holding Ltd. BABA tops the list, with a consensus price target 59% higher than the closing price on Monday. But the stock was downgraded on Tuesday by Bernstein analyst Robin Zhu, who sees a “value trap.”