PayPal and Nvidia Positioned for Comeback Despite Market Slump, Wall Street Bullish
• PayPal stock is down over 80% from its peak but has strong potential for recovery based on increasing profitability and positive outlook from analysts like Morgan Stanley's James Faucette who sees 109% upside.
• Nvidia is dominating in AI chips, with its new Grace Hopper Superchip leading rivals. Its growth has been unprecedented, up over 200% this past quarter.
• The generative AI trend is fueling a market rally this year, with Nvidia as a major beneficiary. Rosenblatt analyst Hans Mosesmann sees 128% more upside.
• PayPal and Nvidia are selling at historically low valuations despite high growth - PayPal at 17x earnings and 2x sales and Nvidia at 40x forward earnings.
• Wall Street analysts overwhelmingly favor both stocks - 32 of 44 rate PayPal a buy with 0 sell ratings, and 51 of 53 rate Nvidia a buy with no sell ratings.