Is It Too Late to Buy NVIDIA?

Core Insights - The AI trade continues to dominate headlines, with many companies experiencing significant share gains due to overwhelming positivity in the sector [1] - NVIDIA has emerged as a leader in the AI space, experiencing unprecedented growth driven by strong demand for its Data Center products [2] Company Performance - NVIDIA's Data Center sales reached $39.1 billion, reflecting a remarkable 73% increase from $22.5 billion in the same period last year [2] - The stock trades at a forward 12-month earnings multiple of 30.1X, significantly lower than its five-year high of 106.3X and median of 50.0X [6] - The current PEG ratio stands at a fair 1.1X, well below historical highs and medians [7] Market Outlook - Analysts maintain positive EPS and sales outlooks, with expectations of 42% EPS growth and 51% higher sales in the current fiscal year [11][12] - NVIDIA's partnerships, including a major deal with Saudi Arabia's HUMAIN and collaboration with Novo Nordisk, highlight the growing demand for its GPUs [9][10] Investment Sentiment - Despite concerns about the stock being too expensive, current valuations are favorable compared to historical levels, supported by robust growth [11] - NVIDIA remains a primary choice for investors seeking AI exposure due to its size and execution capabilities [13]