Nvidia's (NASDAQ: NVDA) stock price nearly quadrupled over the past 12 months as its clients ramped up their orders for its high-end data center graphics processing units (GPUs) to help them take on complex artificial intelligence (AI) tasks. The soaring popularity of generative AI platforms like OpenAI's ChatGPT caused the market's demand for new GPUs to outstrip its available supply, and analysts expect the chipmaker's revenue to surge 81% in fiscal 2025 (which ends in January 2025).

Nvidia's stock might still have plenty of room to run as the AI market expands, but its stock is getting a bit pricey at 37x forward earnings. With a market cap of $2.3 trillion, Nvidia has already become the world's third-most valuable company after and Apple. So it could be tough to replicate its multibagger gains from the past several years.

Image source: Getty Images.

Continue reading

Source Fool.com