Nvidia’s revenue growth accelerated in fiscal Q3, with data center revenue soaring. Management expects a strong fiscal Q4, but stock price may reflect excessive optimism. Shares of Nvidia (NASDAQ: NVDA) will report Q4 results on Feb. 25. The company’s market cap is $4.7 trillion. Business momentum remains exceptional, with revenue up 62% YoY in fiscal Q3 and data center revenue up 66%. Profitability is strong, with a GAAP gross margin of 73.4% in fiscal Q3. Orders for Nvidia’s products are high. The stock’s valuation is high, trading at 48 times earnings. While Nvidia’s growth justifies its valuation, there’s risk if growth rates decline or pricing power weakens. It may be prudent to wait for a better entry point. The Motley Fool’s Stock Advisor team does not recommend Nvidia at this time, citing other stocks with greater potential. Their top 10 stock picks have historically outperformed the S&P 500.

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