Why This Investor Just Bought Nvidia Stock And Will Be 'Adding To It Over Time'

NVIDIA Corp NVDA shares have been beaten down by the market over the last few months, but as the stock price falls, the valuation becomes more attractive, which has created an opportunity to buy growth at a reasonable price, according to Cerity Partner's Jim Lebenthal.

"The multiple is almost [cut] in half, looking on a forward basis," Lebenthal said Tuesday on CNBC's "Fast Money Halftime Report."

He highlighted Nvidia's ability to consistently beat estimates, noting he doesn't expect that to change moving forward.

"Not with the demand in their end markets whether it's AI, cloud computing, gaming," Lebenthal said.

Nvidia is currently trading with a forward earnings multiple of around 38, according to data from Benzinga Pro. Lebenthal thinks Nvidia's earnings multiple may be closer to 30 when the company provides an update on the strength of demand in upcoming quarters.

"I'm pretty comfortable getting into this name now and I'll be adding to it over time," Lebnethal said.

See Also: Here's How Goldman Sachs Views Nvidia

NVDA Price Action: Nvidia has traded between $115.66 and $346.47 over a 52-week period.

The stock was up 4.58% at $223.14 at time of publication.

Photo: courtesy of Nvidia.