Unraveling Nvidia's Value: Wharton's Jeremy Siegel Says 'No One Can Predict How High' Shares Might Go

Nvidia Corp. NVDA shares have risen over 160% in the year-to-date period as its artificial intelligence momentum led traders to pile into the stock.

Nvidia shares may probably be slightly overvalued in the long term, according to Wharton professor Jeremy Siegel. The economist shared his thoughts in an interview with CNBC on Monday.

Nvidia stock has gained about 28% in two sessions following the release of the company's quarterly results.

The stock now trades at a forward price-earnings multiple of 84.03 times compared to the tech sector's average forward P/E multiple of 25. The data seconds the professor’s view.

Siegel, however, did not rule out the possibility of further upside for the stock in the near term. "But for the short term, we know the momentum can carry stocks far higher than their fundamental value, and no one can predict how high they might go," he said.

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Siegel also noted that there was palpable excitement about AI and "Nvidia ratified that excitement with blowout earnings." That's a double push," he said.

Following Nvidia's stellar first-quarter results and strong guidance, sell-side analysts scrambled to upwardly revise price targets for the stock. The Street-high target for the stock is $600, given by Rosenblatt Securities.

Nvidia closed Friday's session 2.54% higher at $389.46, according to Benzinga Pro

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