From Nasdaq: 2024-04-13 17:38:00

Buying and holding great companies for a long time can lead to significant returns, as demonstrated by Nvidia’s stock surging 100x in a decade, turning $10,000 into $1.9 million. With a 70% annual return over the past 10 years, holding onto solid companies can help investors benefit from compounding and growth trends.

Nvidia may seem overvalued with high sales and earnings multiples, but the stock is actually undervalued when considering its forecasted growth potential. With a lower forward P/E ratio than its five-year average and a PEG ratio below 1, Nvidia presents a good investment opportunity for the long term.

Nvidia’s strong growth in revenue and earnings, along with its solid prospects in markets like artificial intelligence (AI) and data centers, make it a top growth stock with the potential to maintain its impressive momentum. Analysts predict substantial revenue growth for Nvidia in the coming years, with the company poised to lead the AI chip market and capitalize on new opportunities like digital twins and AI PCs.

Investors looking to build a million-dollar portfolio can consider investing in Nvidia while it remains undervalued, given its lucrative growth opportunities and market dominance. With potential gains in sectors like AI, data centers, and gaming, Nvidia is well positioned for long-term success and could deliver substantial returns to investors over time.



Read more at Nasdaq: Could This Undervalued Stock Make You a Millionaire One Day?