Is NVIDIA a Buy?
The COVID-19 crisis has not slowed down NVIDIA (NASDAQ: NVDA) as its stock is up 78% year to date, following back-to-back quarters of robust operating results. NVIDIA's gaming segment revenue increased 27% year over year in the most recent quarter, but it's the data center business that's in the spotlight after posting growth of 80%.
NVIDIA's momentum should continue in the near term. Its new Ampere graphics processing unit (GPU) for data centers is currently in production. NVIDIA also recently completed the acquisition of data center networking provider Mellanox, which is expected to be accretive to NVIDIA's margins and profits in the next quarter. But investors have to weigh these strengths against a valuation that already factors in a lot of upside.
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Source Fool.com
