Nvidia's Stock Is Incredibly Expensive. Here's Why it Could Still Go Higher.
One stock that has been symbolic of this year's tech rally is Nvidia (NASDAQ: NVDA). The company's chips have been in high demand as a result of growing interest in artificial intelligence (AI). Its shares have tripled this year as the hype behind ChatGPT sent this already popular stock to new heights. But things have cooled in the past three months, as Nvidia's stock is only up around 1%.
A big obstacle may be the stock's valuation. Investors may be worried they missed the boat on this top AI stock and that it's too expensive to buy now. But there's a valid argument for why the stock can still go much higher than where it is now.
It was about a year ago that ChatGPT entered the mainstream and people started learning about what it can do. From doing data analysis to writing essays and even creating images, AI has made many processes easier. It can generate new things as it gathers more information and data. It learns and adjusts to new information.
Source Fool.com
