Nvidia Stock: Time to Sell?
Chipmaker Nvidia (NASDAQ: NVDA) has seen its stock recover nicely from a pullback in late July and early August. Shares have gone from trading at levels below $100 earlier this month to around $124, as of this writing. That's approximately a 25% gain in a very short period. With so much change so fast, investors who bought the dip or who have been holding from much lower levels earlier this year may be debating whether it might make sense to take their profits and move on.
The decision about whether the stock should be sold at this level is not an easy one. The company, which creates graphic processing units (GPUs) powering the deep learning and artificial intelligence (AI) craze, trades at 74 times earnings -- a high premium. But Nvidia's underlying business fundamentals are incredible; revenue in the company's most recent quarter soared 262% year over year, and earnings per share skyrocketed 629% over the same period.
Here's a closer look at both the bull and bear cases for the stock to help investors decide for themselves what they should do.
Source Fool.com
