SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. I’ve had a financial advisor, who is a certified financial planner (CFP), since December of last year. I really find his advice super valuable, but I can’t seem to get over the fact that he sold all of my Nvidia stock when he took over as my CFP. I had bought $20,000 worth of Nvidia when it was only $130 a share, which would have left me with well over a $50,000 profit. He told me that I should really not g ...

Core Viewpoint - Nvidia's stock performance is expected to be influenced by the upcoming earnings reports from major tech companies including Microsoft, Alphabet (Google's parent company), and Amazon.com next week [1] Group 1 - Nvidia's stock direction is closely tied to the earnings results of Microsoft, Alphabet, and Amazon [1]

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]

Core Insights - Nvidia's CEO addresses key concerns of investors regarding the company's stock performance and future outlook [1] Group 1 - The stock prices referenced were from the afternoon of March 7, 2025, indicating a specific timeframe for investor sentiment [1] - The video addressing investor questions was published on March 9, 2025, suggesting timely communication from the company's leadership [1]

Core Viewpoint - Jim Cramer expresses concern over Nvidia's stock performance, suggesting that the current correction is not over and that many investors lack a solid understanding of the company, leading to panic selling [2][3][4]. Group 1: Investor Sentiment - Cramer criticizes pre-market buyers of Nvidia, labeling them as 'clowns' for their lack of confidence and subsequent selling during pre-market trading [1]. - He believes that the shareholder base of Nvidia is weak, indicating that many investors are not well-informed about the company's operations [2]. - Cramer emphasizes that investors should wait for panic selling to conclude before considering long positions at more favorable prices [4]. Group 2: Stock Performance - As of the latest update, Nvidia stock (NASDAQ: NVDA) was trading at $116.86, showing a slight increase from the previous day's close of $115.99, but still down 12.92% year-to-date [5]. - Technical analysis suggests a potential drop in Nvidia's stock price to levels between $95 and $70, although a significant pullback may not occur [6]. - Despite the current challenges, analysts, including Cramer, remain bullish on Nvidia, expecting that the price drop will be temporary [6].