The Trade Desk Stock Pullback May Present a Buying Opportunity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy NVDA?
Source: Yahoo Finance
- Stock Pullback: The Trade Desk's stock has risen 900% over the past decade but is currently down nearly 80% from its all-time highs, reflecting market concerns about its future growth, although analysts suggest a potential rebound opportunity in 2026.
- Slowing Revenue Growth: Despite Trade Desk's revenue growth rate dropping to 18% year-over-year in Q3, which is the lowest outside of a COVID-19-affected quarter, this figure still exceeds the market's expectation of 16%, indicating some resilience in its business.
- Increased Competition: Trade Desk faces heightened competition from companies like Amazon, as some clients have shifted to in-house ad placements, which has eroded its market share and impacted its growth potential.
- Attractive Valuation: Currently trading at less than 15 times forward earnings, Trade Desk's valuation is appealing, especially since it continues to grow at a mid-double-digit pace, suggesting it remains a high-quality investment opportunity.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Rising Capital Expenditure: AI hyperscalers have announced record capital expenditure plans for 2026, with global data center spending projected to reach $3 trillion to $4 trillion annually, positioning Nvidia as a key beneficiary.
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- Market Volatility Risks: Investors should be aware that IEFA exhibits higher volatility, especially during external market changes, which can significantly impact returns, making it crucial to stay informed about relevant international economic news.
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- Dividend Yield Difference: With a dividend yield of 3.4%, IEFA nearly doubles NZAC's 1.9%, creating a notable gap that positions IEFA as the preferred choice for income-focused investors, especially in the current low-interest-rate environment.
- Market Performance Comparison: Over the past year, IEFA outperformed NZAC in returns, yet NZAC's five-year performance exceeds IEFA by approximately 10%, indicating that while IEFA may excel in the short term, long-term investors might favor NZAC's stability.
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- Elevated Safety Standards: Waymo's VP Srikanth Thirumalai stated in an interview that the standards for autonomous driving should exceed human capabilities, emphasizing that safety is paramount, with future efforts focused on reducing sensor costs and improving software quality to ensure product safety.
- Sensor System Optimization: Currently, Waymo employs a comprehensive system with 29 cameras, 5 lidars, and 6 radars to enhance AI perception, planning to reduce the number of sensors in future robotaxi models while iterating and innovating to lower costs and improve software performance.
- Tesla's AI Perspective: Tesla's VP of AI, Ashok Elluswamy, emphasized at the ScaledML Conference that autonomous driving should rely on cameras rather than sensors, arguing that the challenge lies in AI capabilities rather than sensor technology, highlighting the importance of information extraction.
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