Nvidia (NASDAQ: NVDA) has seen its stock rise approximately 1,500% since 2020, largely driven by a dominant position in the AI GPU market. The company has a market capitalization of $3.5 trillion and currently trades at 24 times its sales, and 46 times its trailing earnings. Despite being perceived as expensive, its anticipated growth of over 50% in sales annually suggests potential for long-term investment.
Nvidia holds a 90% market share in AI-specific GPUs, but faces increasing competition which could impact revenue growth and profit margins. However, projections indicate that the artificial intelligence market is expected to expand by over 30% annually over the next decade. Investors considering Nvidia should weigh these factors, particularly in light of its past recommendation success by analysts.
