Think Nvidia Is Too Risky? The Smartest Artificial Intelligence (AI) Stock to Buy With $1,000 Right Now
Over the past year, Nvidia (NASDAQ: NVDA) has been the talk of the town and one of the stock market's best-performing large companies. The company designs the kind of advanced graphics processing unit (GPU) technology needed for artificial intelligence (AI). As a result, the GPU leader's revenue and earnings have been skyrocketing.
Sales surged 206% year over year in the company's third quarter, and non-GAAP (adjusted) earnings rose 593%. With guidance for sales growth of roughly 231% in the fourth quarter, Nvidia expects the incredible momentum to continue in the near term.
However, the combination of the company's explosive stock gains and the historically cyclical nature of the semiconductor industry suggests that Nvidia may be too hot for some investors to handle. Additionally, the company could see some uneven performance due to bans on advanced chip sales to China and upcoming performance comparisons to recent periods that likely benefited from Chinese customers frontloading GPU orders to get ahead of regulations.
Source Fool.com
