Will You Be Comfortable Buying Nvidia Stock?

Core Insights - Nvidia has established itself as a leading player in the semiconductor industry, particularly in the AI sector, due to its advanced GPU architectures that support AI training and inference workloads across various industries [1] - The stock has experienced a significant increase of 30% this year and is up approximately 90% from its lows in April 2025 [1] Financial Performance - Nvidia is valued at $4.4 trillion with a revenue of $165 billion, currently trading at $180.03 [7] - The company has reported a revenue growth of 71.6% over the past 12 months, with an operating margin of 58.1% [7] - Nvidia's stock is trading at a P/E multiple of 50.7 and a P/EBIT multiple of 43.5 [7] Historical Stock Performance - Nvidia's stock saw a decline of 66.4% from a high of $33.38 on November 29, 2021, to $11.23 on October 14, 2022, while the S&P 500 experienced a peak-to-trough decline of 25.4% during the same period [8] - The stock fully regained its pre-crisis peak by May 25, 2023, and reached a high of $192.57 on October 9, 2025, currently trading at $180.03 [8] Risk and Recovery Analysis - Nvidia's stock has historically shown resilience, with a median return of 53.1% in the year following significant declines since 2010 [7] - The stock has underperformed compared to the S&P 500 during several economic downturns, evaluated based on the extent of decline and recovery speed [3]