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Nvidia Stock: Buy at the Current High?

Core Viewpoint - Nvidia is at the forefront of the AI revolution, designing highly sought-after AI chips and expanding into a comprehensive range of AI products and services [1][5][7] Financial Performance - Nvidia achieved record revenue of $130 billion in the latest fiscal year, a significant increase from $27 billion two years ago, showcasing its success in the AI boom [2] - The company's stock price has surged 1,500% over the past five years, reaching new highs recently [3] Market Position and Innovation - Nvidia is a key player in the AI sector, offering powerful GPUs and various accompanying products, which are essential for AI development [5][7] - The recent launch of DGX Cloud Lepton allows developers to access GPUs from multiple cloud providers, further solidifying Nvidia's market position [6] Risks and Challenges - Nvidia's gross margin has remained above 70%, but it recently dropped to 60% due to a charge related to lost sales in China, which accounted for 13% of sales last year [9][10] - U.S. export controls on chips to China have led Nvidia to exclude this market from its sales forecasts, although U.S. customers represent nearly half of total sales [10] Investment Considerations - Nvidia's stock trades at 35 times forward earnings estimates, which is higher than a few weeks ago but lower than its peak of over 50 [11] - Despite the current high stock price, Nvidia's strong earnings track record and market position suggest it remains a reasonable investment for long-term holders [12][13]