Missed Out on Nvidia? 1 Artificial Intelligence (AI) Growth Stock to Buy Before It Jumps 48%, at Least.
Nvidia (NASDAQ: NVDA) has been one of the hottest stocks on the market in 2024, with shares of the chipmaker registering stunning gains of 70% so far this year as its artificial intelligence (AI)-fueled growth shows no signs of stopping.
Nvidia's revenue and earnings are topping Wall Street expectations. Even better, Nvidia is expected to sustain its impressive growth going forward thanks to its 90%-plus share of the AI chip market and an aggressive product roadmap. The company is set to launch even faster AI graphics cards that will allow its customers to train even bigger large language models (LLMs).
The stock's terrific surge also goes some way toward explaining why it is now trading at 74 times trailing earnings. That's substantially higher than the Nasdaq-100's trailing earnings multiple of 30 (using the index as a proxy for tech stocks). Still, there is a good chance that Nvidia will be able to justify its valuation thanks to the solid growth opportunities it is sitting on. The stock looks cheap when we consider the projected growth that it may deliver.
Source Fool.com
