We are reaching strongly undervalued now

Screening Filters

1. volume > 1,000,000

• Purpose: Focus on stocks with strong liquidity.
• Rationale: If the user is asking whether NVIDIA is becoming “strongly undervalued,” they are likely looking at names that are actively traded and widely followed. High volume helps ensure the stock is investable, easier to enter/exit, and that the market has enough participation for the valuation signal to be meaningful.

2. PriceAboveMA200

• Purpose: Keep stocks in a longer-term uptrend.
• Rationale: A stock can look cheap on valuation alone, but if it is below its 200-day moving average, it may be weak for reasons beyond price compression. Requiring the price to be above the 200-day moving average helps find names that are still structurally strong while potentially getting cheaper, which is more consistent with “undervalued rather than broken.”

3. Industry: Semiconductors & Semiconductor Equipment

• Purpose: Narrow the search to NVIDIA’s core peer group.
• Rationale: Since NVIDIA is a semiconductor company, its valuation should be compared against semiconductor peers rather than the broader market. This filter ensures the screen finds stocks in the same industry where pricing, margins, growth, and investor expectations are directly comparable.

4. Theme: AI Beneficiary

• Purpose: Capture companies benefiting from AI demand.
• Rationale: NVIDIA’s investment case is heavily tied to AI infrastructure spending. If the question is whether NVDA is undervalued, the most relevant comparison set is among AI beneficiaries—companies whose growth is supported by the same AI tailwind. This helps isolate names with similar demand drivers and valuation context.

5. Net margin > 10%

• Purpose: Require profitability and pricing power.
• Rationale: A company can only be “strongly undervalued” in a meaningful sense if it has solid underlying economics. High net margin suggests the business is not only growing but also converting revenue into profit efficiently. That makes the valuation more credible and avoids weak businesses that look cheap for a reason.

6. Quarter revenue YoY growth > 10%

• Purpose: Ensure the company is still growing.
• Rationale: Undervaluation is more compelling when growth is still healthy. For NVIDIA, investors care about whether AI demand is still translating into real revenue expansion. This filter finds companies with at least double-digit year-over-year quarterly growth, which supports the idea that the market may be undervaluing future earnings power.

7. P/E TTM < 45

• Purpose: Screen for reasonable earnings valuation.
• Rationale: NVIDIA is often assessed on premium multiples, but the user is asking whether it is now “strongly undervalued.” A P/E cap helps identify semis with earnings multiples that are not excessively stretched relative to growth and quality. It does not require a bargain-bin valuation, but it excludes names that are still too expensive to plausibly call undervalued.

8. EV/EBITDA < 35

• Purpose: Add a second valuation check beyond P/E.
• Rationale: EV/EBITDA is useful because it accounts for debt and capital structure and gives a cleaner operating valuation view. Using both P/E and EV/EBITDA helps confirm that a stock is genuinely cheaper on multiple measures, not just appearing cheap due to accounting effects.

Why Results Match:

• The user is asking whether NVIDIA itself is becoming strongly undervalued, so the screen is designed to find similar semiconductor/AI stocks that are financially strong, growing, and trading at more moderate valuations.
• The combination of high growth, strong margins, and valuation caps is the right way to test for “undervalued quality,” rather than simply finding the cheapest semiconductor names.
• The industry + AI theme filters keep the comparison relevant to NVIDIA’s actual business drivers.
• The price above 200-day moving average and volume minimum ensure the candidates are liquid and still market-relevant, not distressed or illiquid names.
• Together, these filters help surface stocks that may be closer to NVIDIA’s profile if it were becoming undervalued: profitable, growing, AI-linked, and not excessively expensive relative to fundamentals.