Up Over 120% in 2020, NVIDIA Stock Deserves Its High Price Tag
NVIDIA (NASDAQ: NVDA) CEO Jensen Huang said his company was "firing on all cylinders" during the three months ended Oct. 25. It's easy to see why. Revenue and adjusted earnings per share exploded 57% and 63% higher year over year on gaming and data center strength, easily clearing the bar set a few months prior and setting new quarterly sales records.
Semiconductor stocks are cyclical, and at some point the company's recent momentum will take a breather. Thus, at nearly 20 times full-year expected sales, NVIDIA shares are expensive. But this latest upswing may just be getting started as a wave of new hardware upgrades and new tech innovation gets underway. This stock deserves its ultrapremium pricing.
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Source Fool.com
