Should You Buy Nvidia

last updated on

Should You Buy Nvidia

Should You Buy Nvidia Stock At All-Time High?

There are not that many stocks which have delivered a great performance like Nvidia. The returns from the Nvidia stocks have even eclipsed the returns from many big-name crypto projects.

Now that Nvidia is trading near an all-time high, is it still worth it to buy this tech stock? To better understand this question, we must take a closer look at the Nvidia company.

Nvidia'S Market Cap Near $4.2 Trillion

The market cap of Nvidia is around $4.2 trillion, which is way higher than the entire GDP of many countries. In addition, the Nvidia stock is currently trading at x56 of its earnings, which is also very expensive.

But we must also understand that Nvidia is not an ordinary company at all. In fact, Nvidia is one of the most valuable businesses in modern history.

In the last 5 years, the share price of Nvidia has increased by 1602%. To get such impressive returns from a blue-chip stock is a dream for every investor.

But this growth in the Nvidia share price is also accompanied by growth in their underlying business. That's why the data from last year shows that the revenue of Nvidia was near $130.49 billion. A year before that, the same number was near $60.2 billion.

Looking ahead, the business of Nvidia will grow even further as the chip demand increases. Also, the company has established relationships with many big-name clients.

All of this tells us that Nvidia stock is still a strong buy even if it is trading near the all-time high. But if the all-time high scares some of the investors, they can always wait for a pullback to get an entry.

On the downside, the profitability of Nvidia will be affected due to growing competition and the tariff disputes. However, these risks are still not enough to stay out of a stock like Nvidia.

Trending Stories