Nvidia's stock has seen significant growth, maintains strong market position, potentially good buy for investors.

From The Motley Fool: 2024-05-12 10:30:00

Shares of AI chip company Nvidia have soared over 500% in the past three years, driven by the AI spending boom. While the stock has seen significant growth, investors must assess whether there is still room for new investors to benefit. Nvidia’s leadership in the AI chip market, with a estimated market share of 80-90%, presents a solid foundation for future growth. With Nvidia’s data center business valued at $47.5 billion in 2023 and the potential for growth in the AI chip market, new long-term investors may find upside in the stock despite its recent rally. Nvidia’s price-to-earnings ratio remains attractive, making it potentially a bargain for investors. Ultimately, while investing in stocks carries inherent risks, Nvidia’s strong market position and growth potential suggest it may be a good buy for long-term investors.



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