Should you buy Nvidia stock? (February 2024)

Published first at Nvidia stock analysis. Ticker: $NVDA Nvidia just reported another blowout quarter sending shares up 9% after hours. At the latest price, the company now has a market cap of 1.83 trillion dollars, making it the third largest company in the US behind only Apple and Microsoft. Based on full year figures, Nvidia has now reported 61 billion of revenue over the last 12 months, 30 billion of net income and 27 billion of free cash flow which means the stock is now valued at 30 times revenue or 61 times earnings. That valuation is understandable considering the company’s staggering growth. Fourth quarter revenue was up 265% year over year with annual revenue up 126%. Gross margins increased to 76% with net income margins advancing to 56%. And Nvidia also provided strong guidance for next quarter where they expect revenue to grow another 10% to 24 billion. On the company conference call, CEO Jensen Huang talked of a tipping point where demand for accelerated computing and AI is surging across all companies, industries and countries. He referred to the emergence of new AI Factories, giant datacenters that are made possible through Nvidia super computing. Looking at the numbers and how the world is shifting towards AI, there’s no doubt that Nvidia’s growth can continue. And the company has bright prospects in automotive, software and robotics. #investing #stocks #nvidiastock #3mb