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]

Nvidia's (NVDA -5.07%) CEO responds to the question that every Nvidia stock investor wants to hear more about.*Stock prices used were the afternoon prices of March 7, 2025. The video was published on March 9, 2025. ...

One of the most recognizable voices and notorious voices in finance today, known for his numerous high-profile blunders, Jim Cramer took to social media platform X and dubbed Nvidia pre-market buyers ‘a bunch of clowns’ in a March 5 post.OK, the pre–market buyers of NVDA giving up the ghost. What a bunch of clowns— Jim Cramer (@jimcramer) March 5, 2025 While this might seem like a sudden reversal of Cramer’s noted bullishness on Nvidia stock, first impressions can be deceiving. The eccentric voice of Mad Mo ...