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Where Will Nvidia Be in 5 Years?


The most consequential company of the past two years has no doubt been Nvidia (NASDAQ: NVDA). With a multi-year lead developing artificial intelligence GPUs, there's little doubt Nvidia leads the AI revolution today, and will likely do so for the next five years.

Of course, with its forward P/E ratio now at 36, implying about 100% earnings growth over the 288% earnings growth the company just posted in its past fiscal year, there's a lot of optimism already embedded in Nvidia's price.

To decide if it's worth adding Nvidia today, investors have to judge if all that optimism is warranted... or perhaps if there's not even enough.

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Source Fool.com

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