Why Investors Shouldn't Underestimate NVIDIA
NVIDIA (NASDAQ: NVDA) is a leading supplier of chips for companies that need to process massive amounts of data with artificial intelligence (AI) workloads. Its graphics processors facilitate technologies that consumers engage with every day, including recommendation systems, AI-powered chatbots, and much more.
After a sharp price rise over the last year, the shares look expensive at a price-to-earnings ratio of 89, but based on recent growth and the announcements NVIDIA made at its investor day on April 12, it's difficult to call NVIDIA expensive. The stock could have legs over the next five years and beyond, as it starts to offer software solutions to enterprises.
NVIDIA Grace CPU. Image source: NVIDIA.
Source Fool.com
