Is Nvidia Stock a Trick or Treat? – AOL

Key Points

• Nvidia stock is correcting in recent weeks, down 15% from its high set earlier this month.

• Heady revenue growth and thick margins don’t seem sustainable.

• The bullish case argues that Nvidia at 13 times next year’s earnings is a bargain even at a much slower growth pace.

With its market-leading $5.2 billion valuation, Nvidia (NASDAQ: NVDA) isn’t sneaking up on anybody these days. The poster child of the AI revolution is the largest provider of accelerators and other chips and hardware solutions fueling the AI boom.

It has come a long way from its early days, when it largely served gaming enthusiasts. It’s playing a bigger game these days, but is the company currently wearing the market-cap crown a trick or a treat as we head into the final two months of this year and beyond? Let’s take a closer look at the bad and the good of Nvidia as an investor right now. I’ll wrap it up with my own read on where Nvidia stands as a potential portfolio position.

Missed AI’s “Act 1”? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »

It’s a trick

There are some compelling knocks on Nvidia despite its stellar growth and compelling forward valuation. I may as well start with the historically cyclical nature of this business. Nvidia has delivered monster growth for years, only to stumble…