I Love This AI Stock, but Its Valuation Is Too Lofty for Me Right Now
When it comes to artificial intelligence (AI) stocks, few draw more attention than Nvidia (NASDAQ: NVDA). Its graphics processing units (GPUs) are the most popular to train AI models, making the stock a nearly perfect picks-and-shovels play for the AI revolution.
I say nearly perfect because every stock comes with a price tag, and Nvidia's is just too expensive for me. If you're curious about what Nvidia's current valuation implies, read on to find out.
Everyone knew Nvidia would benefit from an AI boost, which is why the stock price rose 47% from Feb. 22 to May 24, between Nvidia's quarterly reports for the fourth quarter of fiscal 2023 and the first quarter of fiscal 2024, despite Nvidia's revenue falling 21% in Q4. However, no one expected as massive a jump in demand, as Nvidia expects second-quarter revenue to be about $11 billion -- a 64% rise.
Source Fool.com
