Is It Too Late to Buy Nvidia Stock?

Nvidia (NASDAQ: NVDA) stock has started flying once again, with shares of the graphics card specialist gaining 32% since March 14. The stock is now trading at 72 times trailing earnings, which is higher than the multiple it was trading at in the middle of March. Does this mean that investors who didn't take advantage of the pullback in Nvidia stock have missed an opportunity to buy this fast-growing tech company? Let's find out.

There is no doubt that Nvidia remains an expensive stock to buy. However, investors looking for a growth stock should note that the graphics card specialist was trading at a whopping 90 times earnings last year. Going back to 2020, Nvidia remained expensive with a price-to-earnings ratio of 85. It was only in 2019 that Nvidia's valuation was at a relatively cheap 60 times earnings.