Should you buy Nvidia stock? (August 2023)

Nvidia stock update. Ticker: NVDA Join 10,000 investors: https://www.overlookedalpha.com Nvidia just reported another blowout earnings! Revenue for the second quarter came in at 13.5 billion, which was up 88% on the previous quarter, 100% up year over year and 22% higher than company guidance. Gross margins increased more than 5 percentage points to over 70% and net income tripled to 6.2 billion. And the company gave another impressive outlook. Revenue is expected to grow another 19% next quarter to 16 billion. Whatever way you look at it, this was another stunning report from the company which, based on the latest share price, now has a market cap of 1.17 trillion. So what’s the valuation? Based on the trailing twelve-month revenue of 33 billion and earnings per share of 4.2 dollars, the stock now looks incredibly expensive at 36 times revenue and 113 times earnings. However, looking at those trailing metrics makes no sense because Nvidia is growing at a rate of knots. Based on company guidance, next quarters earnings per share should come in around $3.30 so we’re looking at roughly $6 earnings per share for the first half of the year, which is already more than the trailing twelve-month figure. #stocks #investing #nvdastock #overlookedalpha