Morningstar: Nvidia's Fair Value Estimated at $280, 44% Higher Than Current Price

Investment research firm Morningstar reported on July 30 that it has set Nvidia's fair value estimate at $280 per share, which is 44% higher than the current level of approximately $194. The firm noted that Nvidia has dropped 17% since mid-May, diverging from its fair value estimate. Morningstar assigned Nvidia a "very high" uncertainty rating, citing risks including the potential for large cloud service providers to produce their own AI hardware and related customers cutting spending in response to investor demands. Morningstar's senior equity analyst Brian Colello stated that there is a high likelihood of strong AI capital expenditures in the near and medium term, suggesting that Nvidia's growth prospects are underestimated and that the stock appears undervalued.