Grounded in Fundamentals
Nvidia has outperformed every company in the S&P 500. Over the last 10 years, Nvidia has returned around 18,000%. The next best-performing stock, AMD, has only returned 4,700%.
Nvidia has outperformed every company in the S&P 500. Over the last 10 years, Nvidia has returned around 18,000%. The next best-performing stock, AMD, has only returned 4,700%.
Much of those gains came in 2022, 2023, and now 2024 as well.
Returns like these raise eyebrows.
You will see buzzwords like "bubble," "unsustainable," and "crash."
However, as the title suggests, Nvidia's rise is currently grounded in fundamentals, meaning the company's performance is backed by actual financial performance, including increasing revenues and earnings.
And the company is currently cheaper (P/E ratio) than it was at the beginning of 2023. What that means is that the company has faced headwinds from valuations but has beaten those headwinds through extreme amounts of earnings growth.
What's next? Of course, that is always unknown, but I can say that the biggest buyers of Nvidia's chips are not done yet. Jensen Huang, CEO of Nvidia, has said that there is enough demand to drive growth going forward. To translate that, he's saying that he has orders for Nvidia chips that are extending into the future.
Nvidia is up around 60% this year and was up 239.02% last year.
My Reading List
Nvidia earnings
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