Wednesday October 05, 2016

Why NVIDIA's New Highs Are Justified

NVIDIA's shares are hitting new yearly highs daily as the company continues its push into deep learning, automobiles and artificial intelligence but are these new highs sustainable? This guy thinks so and he has some pretty solid reasoning to back up his opinion.

Nvidia's stock should scare value investors as it makes new yearly highs daily. Though the forward P/E is 36 times and the P/E is 45 times, Nvidia is more than just graphics cards. Its GTX 1080 and GTX 1070 will surely boost quarterly revenue despite Advanced Micro Devices' efforts to win market share. Nvidia's investments in deep learning and artificial intelligence will pay off. The market is pricing this in the stock price.