Nvidia Corp (NASDAQ:NVDA) stock made history last Thursday, after the chipmaker became the first company in history to cross the $4 trillion market capitalization level. With the shares currently pacing for a five-day win streak and near their July 11, all-time high of $167.89, options traders are focused on calls.NVDA consistently tops Senior Quantitative Analyst Rocky White's list of equities with the highest options volume over the past two weeks. Over the last 10 sessions, security saw 19,582,022 calls ...

Core Viewpoint - Nvidia's stock has experienced a remarkable increase of nearly 1,500% over the past five years, positioning it as one of the most valuable companies globally, yet it remains attractive for long-term investors [1] Valuation Analysis - On a price-to-sales basis, Nvidia shares appear expensive, trading at 21 times sales with a market cap around $3 trillion, a high premium for a company of this size [2] - However, when evaluated on a price-to-earnings basis, Nvidia's shares are not as overvalued, emphasizing the importance of profits over sales for shareholder returns [2] - Currently, the S&P 500 trades at 28 times earnings, while Nvidia trades at a 35% premium to the overall market, which is reasonable given its profitability and position in the rapidly growing AI sector [4] - Nvidia's sales are growing at over 50% annually, leading to a forward price-to-earnings ratio of 25, compared to the S&P 500's forward ratio of around 20, indicating a 25% premium on a forward basis [4] Future Outlook - Nvidia's rapid growth is expected to reduce its valuation premium significantly over the next 12 months, with the potential for shares to trade at a discount to the market based on current prices in the future [6] - The ongoing demand for AI is likely to contribute to this reduction in premium for many years, suggesting that Nvidia is not overvalued from an earnings perspective [6]

The Nasdaq bear market created an opportunity for me to buy Nvidia (NVDA 3.38%) stock at what I feel is a bargain price.*Stock prices used were the afternoon prices of April 4, 2025. The video was published on April 6, 2025. ...