NVIDIA Stock Hits 52-Week High: Still Worth Holding or Book Profit?

Core Insights - NVIDIA Corporation (NVDA) has experienced significant stock performance, reaching a 52-week high of $191.05, largely driven by the artificial intelligence (AI) boom [1][9] - Year-to-date, NVIDIA shares have increased by 40.5%, outperforming the Zacks Computer and Technology sector's growth of 23.6% and major semiconductor companies [2][4] Financial Performance - In Q2 of fiscal 2026, NVIDIA's Data Center business generated $41.1 billion in revenues, accounting for 87.9% of total sales, with a year-over-year increase of 56% and a sequential growth of 5% [5][11] - Non-GAAP earnings per share rose by 54%, with a non-GAAP gross margin of 61% and operating income increasing by 51% year-over-year to $30.17 billion [11][12] - The company anticipates Q3 revenues to rise by 55% year-over-year to $54 billion, with a gross margin expected at 73.5% [13] Market Position and Demand - NVIDIA's growth is primarily fueled by the demand for its Blackwell GPU computing platforms, which are essential for AI applications [6][10] - The company maintains a strong liquidity position with $56.79 billion in cash and equivalents, allowing for reinvestment in R&D and shareholder returns [16][17] Valuation Concerns - NVIDIA's current forward 12-month Price/Earnings (P/E) ratio stands at 33.62X, higher than the sector average of 29.07X and other major semiconductor companies [18][22] - Despite the high valuation, NVIDIA's strong fundamentals and growth outlook support a hold position for investors [23]