Nvidia: The Best Is Yet to Come
Over the past 10 years, Nvidia (NASDAQ: NVDA), the superchip manufacturer, has delivered remarkable returns, significantly outperforming the S&P 500 index.
A mere $1,000 invested in Nvidia during this period has ballooned into a mountain of cash exceeding $255,000. In contrast, an equivalent investment in a broad-market exchange-traded fund (ETF), such as the Vanguard S&P 500 ETF, would be worth a far more modest sum of around $3,300 today.
However, Nvidia's meteoric rise has elevated its valuation to nosebleed levels. With a forward price-to-earnings ratio of nearly 47, the stock is richly priced compared with the S&P 500. After all, this benchmark index trades at around 21 times forward earnings.
Source Fool.com
