Nvidia Stock Exploded in 2024: How to Protect Your Portfolio From a Reversal for the Rest of the Year
The onset of multiple artificial intelligence (AI) applications across many industries has vaulted Nvidia (NASDAQ: NVDA) into the spotlight among investors. That has led shares of the chipmaker to soar 150% in the first half of 2024. And that includes a retracement of nearly 10% in the final two weeks of June.
The stock's upward trajectory began last year as Nvidia's data center sales soared. Shares have exploded in response, with a gain of 745% since the start of 2023. That raises the question of how much growth is built into the stock, and whether shares have run too far, too fast.
No stock goes up forever, as Nvidia's recent correction from its record high price reinforced. With even a forward price-to-earnings (P/E) ratio of about 45, any slowdown in earnings and sales growth will likely clobber the stock price.
Source Fool.com
