Artificial intelligence (AI) quickly transforms the global economy. The ability to automatically automate the complex flow of work and providing predictive insights has introduced into a new era of business efficiency, at the same time increasing human creativity. Perhaps no other company played a bigger role in the AI revolution than Nvidia (NASDAQ: NVDA). Accelerated division of giant chip Gpu -ovi They are now recognized as the backbone of AI infrastructure, launching the most innovative apps.
Through this success, the shareholders have been beautifully rewarded, and NVIDIA shares have returned a whopping 1,604%in the last five years. Some investors, in view of this, may assume that the shares are now too expensive or overrated. This thinking risks with a big picture overwhelmed, which is Nvidia massive momentum of growth and earnings.
Given those fundamental winds, Nvidia supplies can still be attractively priced. Here’s why.
The latest financial trends from Nvidia were extraordinary. For a fiscal year, which ended on January 26, the revenue increased by 114% compared to the year, driving adapted to earnings per share (EPS) to $ 2.99, increasing by even more stronger 130% compared to last year. Analysts on Wall Street followed by Yahoo! Finance expects the glittering pace to continue, projecting another 56% increase in revenue this year with the aim of EPS in the amount of $ 4.50 in a fiscal 2026.
The result is that the Nvidia section is now traded forward to price until earnings (P/e) Ratio 26, which is significantly below the five -year average above 70 for multiple company earnings. To this extent, Nvidia’s stock seems completely cheap, especially without signs of which demand for its AI chips slows down.
NVDA PE (forward) ratio data Ycharts
There is no data point or metric of evaluation that only determines whether the stock is cheap or expensive. The good news is that Nvidia is well positioned for maintaining its AI dominance in a secular story of growth that is far from the end. Since the adoption of Ai accelerates globally, Nvidia remains the best stock to expose the technological sector.
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