Near a New All-Time High, Is Nvidia Stock Still a Buy?
From Nasdaq: 2025-06-05 15:45:00
Nvidia’s stock saw a recent plunge amidst concerns about AI model evolution and chip demand, but has since rebounded. With two consecutive quarters of high revenue growth, the stock is nearing an all-time high, gaining 50% in two months.
Nvidia remains the leader in AI technology with a decade-long head start and market dominance. The company’s growth continues to outpace competitors, with record revenue in Q1 of $44.1 billion, growing 69% year over year.
Despite a recent valuation increase, Nvidia stock remains attractive at 33 times forward earnings and a low PEG ratio of 0.56. The company’s robust growth outlook, market-leading position, and AI market opportunity make it a compelling investment choice.
The buildout of data centers for AI demand bodes well for Nvidia’s future growth. The company’s Q2 guidance of $45 billion in revenue reflects a 50% growth rate, showcasing continued strong performance in the market.
The adoption of generative AI is still in its early stages, with a potential market value of $2.6 trillion to $4.4 trillion annually. Given Nvidia’s leadership position, technology expertise, and growth prospects, now may be a good time to consider investing in Nvidia stock.
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