Nvidia's stock split increased accessibility, revenue growth optimistic, competition increasing

From Nasdaq: 2024-06-21 07:00:00

Nvidia’s stock split increased accessibility, bringing new investors into the market and bumping up the price. The company has shown consistent revenue growth, especially in AI, with an expected $28 billion in revenue this quarter. CEO Jensen Huang remains optimistic about the future of AI. However, competition is heating up, with AMD making significant R&D investments to catch up with Nvidia.

While Nvidia’s high stock price may give pause, its forward PEG ratio indicates it may be reasonably priced compared to Apple and Microsoft. The company’s growth potential justifies its premium valuation, but investors should monitor whether it delivers on promised growth. The Motley Fool Stock Advisor team did not include Nvidia among its top 10 stock picks, highlighting other potential investment opportunities for higher returns.

Considering Nvidia’s track record of revenue growth, CEO vision, and competitive landscape, investing in the company could be a sound decision. However, it’s essential for investors to conduct thorough research and consider factors like valuation metrics before making any investment decisions.



Read more at Nasdaq: Nvidia’s Stock Split Happened 2 Weeks Ago. Is It Too Late to Buy?