NVDA: Still Expensive for the Risk

Nvidia (NVDA) recently lost its major catalyst (the pandemic driving up retail sales), and is about to lose another: the mining of Ethereum (ETH). Additionally, the heightened geopolitical tension increases risk to NVDA’s supply chain. Unfortunately, the broad market downturn has hit tech growth stocks the hardest. After a 45% drop in price, has NVDA shifted away from being overvalued to undervalued? Not quite yet; I am neutral on NVDA. End of GPU Cryptocurrency Mining Ethereum mining has been a major catalyst for GPU demand. However, Ethereum mining is nearing its end.