Nvidia (NASDAQ: NVDA) is reaping the rewards of the artificial intelligence (AI) boom thanks to its solid position in the graphics processing unit (GPU) market, as the demand for these chips has skyrocketed because of the role they play in training AI models.

The graphics specialist delivered terrific guidance when it released its fiscal 2024 first-quarter results (for the three months ended April 30) on May 24. The company expects its revenue in the current quarter to hit $11 billion, which is way ahead of the $7.2 billion consensus estimate. Nvidia's guidance suggests that its top line would jump 64% on a year-over-year basis, driven primarily by the growing application of generative AI, a technology that relies heavily on graphics cards to train large language models.

Nvidia's outstanding guidance has sent the stock flying. But that also means that the tech stock is now prohibitively expensive for anyone looking to jump onto the AI gravy train now.

Continue reading

Source Fool.com