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Nvidia faces rising competition and downgrades to Hold despite attractive valuation at 11x P/E.

Analyst Insights
10 Nov 2026, 15:57 WIB
Seeking Alpha
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Bearish
Nvidia faces rising competition and downgrades to Hold despite attractive valuation at 11x P/E.

Nvidia is encountering growing competitive threats from hyperscalers and AI labs developing their own chips, which challenges its traditional market advantage. Despite recent negative sentiment and concerns related to China, Nvidia's stock trades at a relatively low price-to-earnings ratio of 11x, making it appealing for near-term investors. However, structural risks from custom ASICs and customers bringing chip development in-house remain significant concerns. As a result, Nvidia has been downgraded from Buy to Hold, balancing its attractive valuation against these long-term competitive risks.

Nvidia shares are priced at USD 175.59 on Pluang as of Nov 10, 2026 20:51 WIB, down 1.72% in the last day. Despite the recent downgrade to Hold, the stock maintains a significant market cap of $4.31 trillion and sees active trading with a volume of 456,756,830 shares. The balance of buy and sell orders on Pluang is fairly even, with 55% buying and 45% selling, reflecting mixed investor sentiment amid competitive challenges.

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