1 Reason I'm Never Selling Nvidia Stock

Core Viewpoint - Nvidia stock is being considered for purchase due to changing market sentiment and the potential for continued growth despite recent declines in stock value [1][4]. Group 1: Stock Performance and Market Sentiment - Nvidia shares have increased approximately 1,300% over the last five years, driven by the use of GPUs in Bitcoin mining and artificial intelligence applications [3]. - After reaching an all-time high in October, Nvidia's stock has dropped by 12% in a little over a month due to concerns about the sustainability of AI enthusiasm [4]. - Current stock price is $174.96, with a market cap of $4.3 trillion and a gross margin of 70.05% [8]. Group 2: Competitive Landscape - The Wall Street Journal highlighted Nvidia's 59% operating profit margins, which are significantly higher than those of competitors, potentially leading to increased competition in the AI chip market [5]. - Rivals such as AMD, Marvell, and Qualcomm may enter the market with lower-priced alternatives, which could challenge Nvidia's market position [5][6]. - Despite competition, major companies like Alphabet are still investing heavily in Nvidia's GPUs, indicating strong ongoing demand [8]. Group 3: Future Growth Potential - Analysts predict Nvidia's annual profit of $99.2 billion will grow nearly 44% per year over the next five years, potentially quadrupling by 2030 [8]. - Nvidia's current valuation of 45 times trailing earnings is considered fair given its growth rate, with a PEG ratio of 1.0 indicating a reasonable price for a growth stock [9].