I have made a 100% return on my Nvidia stock. A lot of people think it would be unwise to invest it in any further. Everything I am reading currently says AI has such a huge demand for things like GPU’s and memory that prices are going up for regular PC users trying to build a PC. I don’t see this trend slowing down at all. I also own AMD stock which has done good too. I have some other stocks like Amazon, Apple, Google, Costco and such but I think investing in AI is the best chance of a large return.
I agree. Nvidia is a well managed industry leader. When AI sales slow, their growth will flatten. But I expect them to reinvent themselves and continue to do well. Robotics could be next. They are set for self driving cars.
Earnings due in Feb. I think numbers will be good, maybe not outstanding.
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The first sentence should not have anything to do with the second sentence.
The wisest NVDA investors in the last decade are those that held it long past making 100% - and well past making 1000%.
Note, none of the above is an endorsement of NVDA but it is a caution against Anchoring.
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I wasn’t inferring that it would be unwise to invest further because of my 100% return. I have read over and over again that Nvidia can only go so high as it has the highest valuation of any stock.
Yes, highest market cap causes some to say its unlikely to double soon. But most of us can be happy w 20 to 30% growth per year. Yahoo gives total return for one year as 30.17%.
Sure, there is some validity to a stock having an upward limit to valuation - it isn’t going to grow by 10,000% from here in the next 10 years - but the question you should be asking yourself is does NVDA have greater growth potential than the alternatives (whatever those might be). It may not grow at 100% over the next 12 months but might it grow faster than the S&P or some other alternative, despite it being the most valuable company already?
A list of the top 10 companies by valuation is utterly loaded with growth stocks. It would seem to be contrary to history for them to achieve that valuation and then suddenly stop. Historically, that ranking changes over a decade, not annually - with many continuing to display excess alpha for years.
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