Is It Too Late to Buy Nvidia Stock Now?
Nvidia (NASDAQ: NVDA) has been around since the early 1990s and progressively grew earnings over the years by serving the video game industry. The company makes graphics processing units (GPUs), the chips that fuel the speed and action needed to make games come alive on the screen. But Nvidia only took center stage in recent years, when it became clear its GPUs also would be gamechangers for something else: artificial intelligence (AI).
Though Nvidia still serves the gaming industry, revenue from that area today is a fraction of overall revenue -- while revenue from AI represents the lion's share. Earnings have grown in the triple digits in the past several quarters, and revenue continues to reach new records. Nvidia's stock price has followed, soaring more than 3,500% over the past five years -- and it even roared past $1,000 a few weeks ago.
Most recently, Nvidia completed a 10-for-1 stock split, bringing the share price down from those levels to make it more accessible to a broader range of investors. This means right now Nvidia trades for about $130 a share, and this does make it easier for those with smaller budgets -- or those who want to open a small position -- to invest in the stock. That's positive. Now, though, the question is whether Nvidia can once again take off and deliver great returns to investors in the coming years. Is it too late to buy this high-flying stock now? Let's find out.
Source Fool.com
