Video gaming and data center graphics processing unit (GPU) market dominance, in particular, should help the firm maintain its exceptional growth and beat the market’s expectations. The firm is also expected to conclude the fiscal year with revenue 60% higher and profits per share that is 74% larger than the previous year, demonstrating that its growth is robust enough to justify the high multiples at which it is now trading. With sales likely to reach $7.4 billion, the chipmaker is poised to deliver a strong report to investors. With that being said, NVDA has been a strong performer over the last couple of years, growing more than 230% as a result of the company’s strong rise in profits and sales during that period. The hardware manufacturer presently trades at 74 times trailing profits, 46 times prospective earnings, and 25 times sales, which is rather pricey when compared to the Nasdaq 100 index, which has a price-to-earnings ratio of 34. The company’s value is one of the most important factors that investors should examine when deciding whether to sell their Nvidia stock.

Source: īased on the price predictions of the 25 TipRanks experts’ stock recommendations for NVDA over the past three months, 23 advocate that investors should “ Buy,” while two experts recommend that investors should “ Hold,”, interestingly none advise to “ Sell.”Ĭonsequently, the average rating for Nvidia stock is a “ Strong Buy,” with a potential upside of 46.57% over the next 12 months.

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