Is Nvidia a Buy?
Nvidia (NASDAQ: NVDA) has become a Wall Street darling this year with its shares up 205% year to date. The company's longtime dominance in graphics processing units (GPUs) perfectly positioned it to profit substantially from a boom in artificial intelligence (AI). GPUs are crucial to developing AI models, so the chipmaker became the go-to supplier for most companies.
Its swift rise has many investors considering adding its stock to their portfolio. Nvidia recently delivered stellar quarterly results and will likely be a key player in AI for years. It could be a lucrative long-term buy.
But it's also worth asking how long it can sustain this growth and whether future year-over-year comparisons will hurt its share price. Here's why it's wise to exercise caution before loading up on the stock now.
Source Fool.com
