Should you buy Nvidia stock? (May 2024)

Published first at https://www.3minutebreakdowns.com Nvidia stock analysis. Ticker: $NVDA Nvidia reported earnings last week and the stock jumped again taking the company’s market value to 2.65 trillion dollars. With 31 billion of cash on the balance sheet and 9.7 billion of debt, the enterprise value is 2.63 trillion. Over the last 12 months, Nvidia has now reported 80 billion dollars of revenue, 43 billion of net income and 39 billion of free cash flow so the stock is valued at roughly 33 times revenue and 62 times earnings. This was another strong earnings report from Nvidia. Revenue increased 260%, gross profit quadrupled and free cash flow grew to $15 billion, a free cash flow margin of about 58%. Ever since the company reported Q1 earnings a year ago, Nvidia has continued to defy expectations. The explosive growth of generative AI and the need for Nvidia’s GPUs has produced one of the most consequential stock market rallies in history. The company has added 1.8 trillion dollars in market cap over that time, roughly the same size as one Amazon. Of course, investing is about looking forward, not back. And at 62 times earnings there are some obvious questions about Nvidia. The first is slowing growth. Starting in the second quarter, Nvidia’s growth is going to slow dramatically. Yearly comparisons will now include the huge spike from one year ago, giving the company a progressively higher bar to clear. The rate of revenue growth looks set to decline for the fourth quarter in a row. #nvdastock #stocks #investing #3mb