Nvidia Stock Plunged Today -- Is It Time to Buy?
Investors are selling Nvidia (NASDAQ: NVDA) stock today, even after the company reported record results for its fiscal 2022 fourth quarter and full year. There are several likely reasons for the reaction. The stock had gained 125% in 2021, and even after its record year, the stock's valuation is at a lofty level.
The price-to-earnings ratio is still over 60, based on the recent fiscal year results. But those are real earnings -- not just sales -- that soared 123% year over year. Investors today seem to be focusing on management's prediction that gross margin will remain flat for the current quarter. The drop in shares makes it a good time to see whether long-term investors may be getting a good chance to invest.
Nvidia Drive Hyperion will support autonomous vehicle development. Image source: Nvidia.
Source Fool.com
