Nvidia stock has surged 1,080% in 4 years, with upcoming stock splits and strong growth.

From Nasdaq: 2024-05-27 04:25:00

Nvidia shares have surged 1,080% in the last four years to $118,000 on a $10,000 investment in May 2020, outperforming the S&P 500’s 91% return. The company’s 4-for-1 stock split in July 2021 and planned 10-for-1 split next month will make shares more affordable. Analysts overwhelmingly rate Nvidia a buy with a $1,200 price target.Nvidia is a leader in accelerated data center computing, dominating GPU spending in 2023 and expected to maintain a strong market share in 2024. The company’s full-stack strategy, covering all elements of the data center stack, sets it apart from competitors like AMD and Microsoft. Nvidia’s recent financial report showed stellar growth, with revenue up 262% and net income up 461% in Q1 fiscal 2025. The company guided for $28 billion in second-quarter revenue, driven by demand for the new Blackwell AI factory platform. With projected annual earnings growth in the low-30% range through 2030, Nvidia’s PEG ratio of 1.6 suggests a reasonable valuation compared to other AI stocks. Despite risks related to meeting earnings growth expectations, investors may consider buying Nvidia shares cautiously. The Motley Fool’s Stock Advisor team has identified 10 other promising stocks that could offer significant returns.



Read more at Nasdaq: 1 Stock-Split Artificial Intelligence (AI) Stock Up 1,080% in 4 Years to Buy Now, According to Wall Street