Should You Buy Nvidia

Should You Buy Nvidia by Andrew Blumer last updated on July 26, 2025

Should You Buy Nvidia Near Aths?

Nvidia (NVDA) has totally redefined how much return an investor should expect from a stock. Within a span of 2 years, Nvidia has gained almost 66% and is now hovering near its ATHs.

Nvidia has gained almost 1572% within a span of 5 years, a record in itself. In fact, no one expects a return like this from a blue-chip stock.

Nvidia: A Better Choice Than Tesla

As of now, the Nvidia stock is trading at 52x of its earnings, which makes it a little expensive for a growth stock. But, there are many stocks, such as Tesla, which trade at a 3x P/E ratio.

Looking ahead, the long-term business growth of Nvidia is way better than that of Tesla. So, in a sense, Nvidia is a better choice than Tesla, even at the current price.

Also, the EPS of Nvidia has jumped to around 2700%, which is also a record in itself. This actually makes the Nvidia look cheaper as compared to around 5 years ago.

So, if the EPS of Nvidia continues to move higher, even if slowly, it would make its P/E just under 52. So, even at the current price, the shares of Nvidia are actually cheaper than many other growth stocks.

There's a lot to like about this US chip maker: From being profitable to a global leader, they can sell their products even at a premium.

So, while the Nvidia stocks still look like a great option, it's better to wait for a good price. Entering Nvidia at a good price and using the DCA can be the ideal strategy to ride the next bullish wave.

However, Nvidia also faces risks in the form of growing competition and tariff disputes. But the future continues to look bright for Nvidia as AI demand continues to move higher day by day.

But it would be wise not to buy Nvidia near ATHs, as doing so may get you stuck at a really high price.