Nvidia has overtaken Apple and Microsoft to become the most valuable company in the world following a 10-for-1 stock split. The split has made shares more accessible to investors, leading to an increase in stock price by about 12%. The company has seen incredible revenue growth, especially in its AI business, with expectations of $28 billion in revenue this quarter.
While CEO Jensen Huang is optimistic about the company’s future, there is fierce competition in the AI market, particularly from Advanced Micro Devices. Nvidia has been investing heavily in research and development to stay ahead. However, there are concerns about the company’s high price-to-earnings ratio compared to Apple and Microsoft.
Despite the high P/E ratio, Nvidia’s forward price-to-earnings-growth ratio suggests that the stock is priced more reasonably given its growth expectations. Investors should monitor the company’s performance to ensure it meets its projected growth.
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https://www.fool.com/investing/2024/06/21/nvidias-stock-split-too-late-to-buy/
