Think INVISTA's stock is overpriced? One Wall Street analyst thinks maybe not.

At the current share price of $888.INVISTA (NASDAQ: NVDA)The stock price is more than 3 times what it was a year ago. To be precise, its share price has risen by 238%, and it now sells for 37 times trailing sales, which seems a bit outrageous.

However, if you go and askRaymond James Corporation (RJC)For bankers, $888 is not at all an unreasonable valuation for Nvidia's stock. Moreover, Nvidia's share price could reach $1100 within a year.

Buy Nvidia stock at $888?

Nvidia's stock price may be three times what it was a year ago, but it's actually down 7% from its highs three weeks ago when the stock was trading at nearly $1,000. Why is that? Nvidia may be a victim of its own success, as investors are concerned that AI customers are holding off on purchasing Nvidia's current H100 chips in hopes of buying the company'sthe next generation Blackwell chips, the latter of which are expected to deliver up to four times the performance of today's chips.

Don't worry, says Raymond James, RJ, AI chips are still in short supply, and buyers would be lucky if they could get an H100 chip today, and are unlikely to put off buying one in the hope that they can get a Blackwell chip tomorrow. Basically, the thinking is that any AI chip Nvidia can make will sell, whether it's H100s, H200s or B100s/200s.

This situation is likely to continue until competitors catch up. Most analysts believe that Nvidia's sales not only will not slow down, but will likely translate more than double this year to $60.9 billion, and then grow over the next four years.triple This is more than the $19.6 billion in sales growth in 2028, which is equivalent to 49% annualized sales growth. This corresponds to an annualized sales growth rate of 49%. For the long termprofitability The growth forecast is even more impressive: an annualized growth rate of 92% through 2028.

As silly as it sounds, Nvidia stock at 37x sales and 76x P/E might actually be cheap these days.

Should you invest $1,000 in Nvidia now?

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Rich Smith does not own any of the stocks listed above.The Motley Fool holds a recommendation for Nvidia.The Motley Fool has a disclosure policy.

Think Nvidia's Stock Is Too High? A Wall Street Analyst Thinks Maybe Not was originally published in The Motley Fool.