Where Will Nvidia Stock Be in 1 Year?
With its share price up by a remarkable 24,000% over the last 10 years, Nvidia (NASDAQ: NVDA) has been a life-changing investment for shareholders who have held on for the long haul. But past performance isn't a guarantee of future results, and investors who buy its shares now are buying at the top of a mountain. What might the next 12 months have in store for this soaring chipmaker?
Although Nvidia's parabolic stock price chart might make it look like it is in a speculative bubble, it isn't. The company's fundamentals have justified the rally, and its fiscal 2025 first-quarter results showed that its exceptional growth continues.
In the period, which ended April 28, revenue grew 262% year over year to $26 billion, driven by relentless demand for Nvidia's high-end graphics processing units (GPUs) -- the variety used to run and train artificial intelligence (AI) models. These chips are expensive, and demand is exceeding supply, giving Nvidia incredible pricing power. The company's gross margin rose to 78.4% -- up 2.4 percentage points from the previous quarter and 13.8 percentage points year over year.
Source Fool.com
