{
  "id": 4249868,
  "title": "Why I'm Still Holding Nvidia (NVDA) Stock Despite Its Sky-High P/E Ratio",
  "url": "https://urgent.news/2026/08/29/why-im-still-holding-nvidia-nvda-stock-despite-its-sky-high-p-e-ratio",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-29T18:20:00.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/why-im-still-holding-nvidia-182000338.html"
  },
  "original_language": "en",
  "account": "Despite its sky-high price-to-earnings ratio, the author is still holding Nvidia (NVDA) stock because the company's growth rate is exceptional. The semiconductor giant has seen an impressive annual gain of 63% over the past decade, and a $10,000 investment made 15 years ago would now be worth $7.5 million with reinvested dividends or $6.9 million without. The author has been a shareholder for only a year or two and intends to hold onto the stock for the long term.\n\nNvidia has successfully transitioned from gaming chips to focusing on AI, which is a rapidly growing industry. The company boasts a dominant AI ecosystem, offers financing for AI infrastructure to smaller companies, and expands its product offerings with custom AI processors and partnerships. Nvidia reported a remarkable second quarter, with revenue up 106% year-over-year to $96 billion, and data center revenue up 117% to $89 billion.\n\nThe company's market capitalization is $5.5 trillion, and it has acquired AI specialist Hugging Face for $12.9 billion. Nvidia CEO Jensen Huang assures that AI has reached its inflection point and is now producing profitable work. The stock's price-to-sales ratio of 17 is high, but this is not uncommon for a fast-growing technology company. Moreover, Nvidia's forward-looking price-to-earnings ratio of 24 is well below its five-year average of 35, and its price-to-cash flow ratio of 29 is below its five-year average of 51.\n\nNvidia is also buying back some of its shares, buying $26 billion worth in the latest quarter, which indicates that management sees the stock as undervalued. Additionally, the company recently increased its dividend payout by 25 times, giving it a dividend yield of 0.49%. While the author acknowledges that Nvidia has risks, they believe that even in a market downturn, the stock would likely recover and reach new highs.",
  "summary": null,
  "key_points": [
    "Nvidia's stock holds value despite high P/E ratio due to exceptional growth.",
    "Semiconductor giant's AI transition and dominance in AI ecosystem.",
    "Nvidia's stock shows undervaluation with forward P/E below five-year average."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "Motley Fool",
        "title": "Why I'm Still Holding Nvidia (NVDA) Stock Despite Its Sky-High P/E Ratio",
        "url": "https://urgent.news/2026/08/29/why-im-still-holding-nvidia-nvda-stock-despite-its-sky-high-p-e-ratio-4254587",
        "published": "2026-08-29T18:00:00.000Z"
      },
      {
        "outlet": "Nasdaq Markets",
        "title": "Why I'm Still Holding Nvidia (NVDA) Stock Despite Its Sky-High P/E Ratio",
        "url": "https://urgent.news/2026/08/29/why-im-still-holding-nvidia-nvda-stock-despite-its-sky-high-p-e-ratio-4256157",
        "published": "2026-08-29T18:20:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}