From Nasdaq: 2024-06-02 05:03:00

Nvidia (NASDAQ: NVDA) released record first-quarter results, including a 262% revenue increase and a 629% surge in EPS. Shareholders were excited by the announcement of a 10-for-1 stock split, leading to a 14% stock increase and a 117% gain this year. Nvidia’s AI focus continues to attract investors. Stock split benefitsA stock split aims to make shares more accessible to investors by reducing the stock price. Nvidia’s split will give shareholders nine additional shares for each one owned, making the stock more affordable to buy in whole numbers rather than fractions. With Nvidia’s strong performance driving growth, the stock remains attractive despite its premium valuation. Strong financialsNvidia’s revenue surged 126% year over year to $60.9 billion in fiscal 2024. In the first quarter of fiscal 2025, revenue grew 262% to $26 billion, with a 629% rise in EPS to $5.98. Demand for generative AI is a major driver of growth for the company, with projected revenue growth of 107% for the second quarter. Bullish outlookExperts anticipate Nvidia’s growth to continue with the widespread adoption of AI, which is expected to add trillions to the global economy. Nvidia’s GPUs are leading the industry in AI systems, positioning the company for ongoing success. Despite concerns of a high valuation, Nvidia’s strong track record and future prospects make it a compelling investment opportunity. Investing in NvidiaConsider investing in Nvidia to capitalize on its growth potential and strong performance. While the stock may not be for every investor due to its premium valuation, buying on dips or signs of weakness could be a prudent strategy. With Nvidia’s proven results and promising outlook, the evidence supports the premium valuation and suggests a strong investment opportunity.



Read more at Nasdaq: Is Nvidia Stock a Once-in-a-Generation Investment Opportunity Ahead of Its 10-for-1 Stock Split on June 7?