From Yahoo Finance: 2025-05-03 15:31:00

Nvidia stock has skyrocketed by 1,500% in the past five years, making it extremely valuable. Despite high price-to-sales ratios, shares are attractive for long-term investors. With a market cap of $3 trillion, Nvidia trades at a significant premium but remains profitable. Investor returns are more influenced by profits than sales.

Nvidia’s stock trades at a 35% premium to the S&P 500, reflecting its position in the growing AI market. With sales increasing at over 50% annually, the forward price-to-earnings ratio is just 25 times. The company’s fast growth should reduce the stock’s valuation premium over the next year and potentially lead to discounts in the future.

Investing in high-performing stocks like Nvidia, Apple, and Netflix has yielded significant returns. With a “Double Down” stock recommendation, investors have seen substantial profits over time. The opportunity to invest in these companies may not come around again soon, making it an ideal time to consider joining Stock Advisor.

The Motley Fool has positions in and recommends Nvidia, highlighting the potential for continued growth in the company. With expert analysis and historical returns, investing in top-performing stocks like Nvidia can lead to substantial gains over time. Joining Stock Advisor provides access to valuable investment opportunities and recommendations.



Read more at Yahoo Finance: Think Nvidia Is Expensive? These 3 Charts Might Change Your Mind.