Robert Ruggirello, chief investment officer at Brave Eagle Wealth Management, believes investors still have an opportunity to buy into Nvidia (NVDA, Financial) after missing its massive rally. In a Friday client note, Ruggirello pointed to Nvidia's recent valuation reset as a compelling reason to enter the stock, despite the broader market's downturn.
The S&P 500 (SP500) is on pace to decline more than 4% in Q1 2025, and Ruggirello said the correction phase appears to be nearing its end. “While some market corrections involve a re-test of the lows, we believe valuations are compelling and would be putting new money to work,” he noted.
Nvidia's price-to-earnings multiple has fallen from 45x to 24x, according to Ruggirello, compared to the S&P 500's move from 25x to 21x. He said this has narrowed the valuation gap between Nvidia and the broader market, opening a window for investors who previously sat out the AI chipmaker's rally.
Nvidia shares have surged 322% over the past two years, rising from $26.41 to $111.43 through Thursday's close.
Markets were weaker Friday as core PCE inflation came in slightly above expectations. Traders are also watching for possible tariff-related updates from the Trump administration in the coming week.
