Why I'm Still Holding Nvidia (NVDA) Stock Despite Its Sky-High P/E Ratio
It has been growing at a breathtaking pace, but its shares don't seem overvalued.
Nvidia's stock has seen significant growth, with average annual gains of 63% over the past decade. A $10,000 investment in the company 15 years ago would have grown to $7.5 million with dividends reinvested, or $6.9 million without reinvestment, according to Motley Fool.
The investor, who has held Nvidia shares for about a year or two, plans to continue holding despite the stock's high price-to-sales ratio of 17, as of August 26. Nvidia has shifted its focus from gaming chips to data center chips used in artificial intelligence, boasting a dominant AI ecosystem, as reported by Yahoo Finance.
Nvidia is also expanding its offerings, including custom AI processors and a financing platform to help smaller companies afford AI infrastructure. The company's growth rate is a factor in mitigating concerns about its high valuation.
Brief written by urgent.news from Motley Fool, Yahoo Finance — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
