Is NVDA the Best Stock now
The quick answer is yes. At least for me. And that is not just because of the stock price being up +42% over just 1 month. It is really because NVDA is a leader and gives a lot of confidence in what it is going to do in the next 3, 5 and even 10 years.
Nvidia the company has led the technology space over the last couple of decades. They are big in gaming chips and we know how big gaming has become. They are a leader in data center technology and now they are leading in the “Metaverse”.
Investors though care about stock price performance and it has not disappointed there at all.
The price chart looks as good as it can get. The returns have been phenomenal no matter what time period one looks at:
1-month: +42.54%
3-month: +66.36%
YTD: +142.63%
1-year: +135.87%
2-year: +500.79%
Yes, those are the real returns. That kind of stock price appreciation comes through strong consistent execution. Very few people know about the Co-Founder, President and CEO Jensen Huang and he has steered the ship at Nvidia for almost 30 years now.
The fundamentals of the company look strong as well. The sales growth is projected at 68% and earnings growth rate is projected at 37%. The P/E for the stock stands at 71 which is reasonable for the forecasted growth. For comparison purposes TSLA P/E is at 146.
I own NVDA through my positions in TQQQ, FNGU and BULZ.