Has Nvidia Stock Become Too Cheap to Ignore?
Nvidia (NASDAQ: NVDA) has become a stock market giant thanks to its dominance in one of today's highest-growth markets: artificial intelligence (AI), a $200 billion market that analysts say is heading for $1 trillion by the end of the decade. The tech company has practically built an empire of AI products and services including hardware, software, networking tools, and more -- to serve every AI customer along every step of their AI journey. Chief Executive Officer Jensen Huang has even called the company the "on ramp" to the AI world.And Nvidia's crown jewel is its graphics processing units (GPUs), the fastest chips around that power crucial AI tasks such as the training and inferencing of models. Customers, including the world's biggest tech companie,s Microsoft and Amazon, rush to Nvidia for its latest products, helping the company bring in billions of dollars in earnings. In fact, in the recently closed fiscal year, Nvidia reported a triple-digit gain in revenue to more than $130 billion, a record.The shares have followed, soaring 1,500% over five years. The downside of all of this is, at a certain point, Nvidia's stock traded at levels many investors considered expensive. But, in recent weeks, as stocks declined on concerns about the general economy, so did Nvidia -- and its valuation. In fact, the stock is trading at its lowest in relation to forward earnings estimates in more than a year. Has the stock become too cheap to ignore? Let's find out.Continue reading
Nvidia (NASDAQ: NVDA) has become a stock market giant thanks to its dominance in one of today's highest-growth markets: artificial intelligence (AI), a $200 billion market that analysts say is heading for $1 trillion by the end of the decade. The tech company has practically built an empire of AI products and services including hardware, software, networking tools, and more -- to serve every AI customer along every step of their AI journey. Chief Executive Officer Jensen Huang has even called the company the "on ramp" to the AI world.
And Nvidia's crown jewel is its graphics processing units (GPUs), the fastest chips around that power crucial AI tasks such as the training and inferencing of models. Customers, including the world's biggest tech companie,s Microsoft and Amazon, rush to Nvidia for its latest products, helping the company bring in billions of dollars in earnings. In fact, in the recently closed fiscal year, Nvidia reported a triple-digit gain in revenue to more than $130 billion, a record.
The shares have followed, soaring 1,500% over five years. The downside of all of this is, at a certain point, Nvidia's stock traded at levels many investors considered expensive. But, in recent weeks, as stocks declined on concerns about the general economy, so did Nvidia -- and its valuation. In fact, the stock is trading at its lowest in relation to forward earnings estimates in more than a year. Has the stock become too cheap to ignore? Let's find out.
