Nvidia Stock Tops Buy Point

Chart patterns are good ways of telling when to buy or sell a stock. Nvidia's chart shows the stock topped the 922.20 buy point from a handle Wednesday. The stock is in buy range to 968.31. According to IBD MarketSurge, the stock has an alternative buy point at 974.Since January 22, 1999, NVIDIA's market cap has increased from $562.80M to $2.26T, an increase of 401,516.92%. That is a compound annual growth rate of 38.80%.What companies does Nvidia own

• OmniML, 2023, 100% ownership.
• Excelero Storage, 2022, 100% ownership.
• Bright Computing, 2022, 100% ownership.
• Swiftstack, 2020, 100% ownership.
• Mellanox Technologies, 2019, $6.9 billion, 100% ownership.
• Soundhound AI, 2023, $1.7 million, 0.6% ownership.

Where is Nvidia manufactured : Taiwan

Most of Nvidia's high-end chip production is done by TSMC at its Taiwan-based factories, industry experts told Business Insider. The Taiwan-based company is the world's largest chip manufacturer and one of the companies currently building plants in the US.

Is NVDA a strong buy

The company's cash and cash equivalents were $25.98 billion as of Jan 28, 2024, up from $18.28 billion on Oct 29, 2023. NVIDIA, rightfully, has a Zacks Rank #1 (Strong Buy) and a Growth Score of B, a combination that offers the best opportunities in the growth investing space.

How much will NVDA be worth in 5 years : Consensus estimates predict Nvidia's earnings will increase at an annual rate of just over 35% for the next five years. Based on the company's fiscal 2024 earnings of $12.96 per share, its bottom line could jump to $58.11 per share after five years, assuming it does increase at the predicted rate.

If you had invested $1,000 in Nvidia 10 years ago, your investment would have soared by about 22,340% and be worth around $148,226 as of Feb.

Have a look at the above chart and you'll see that if you invested $1,000 in Nvidia stock 20 years ago, it would today be worth more than $426,000. The same amount invested in the S&P 500 would theoretically be worth about $6,600 today.

Is NVDA overvalued

But despite its more than twenty-fold growth over the past five years, Nvidia's fundamentals remain robust. The company's P/E and EV/EBITDA ratios suggest it may not be excessively overvalued compared to previous periods.Nvidia has identified Chinese tech company Huawei as one of its top competitors in various categories such as chip production, AI and cloud services.During the pandemic, the shift to remote work and subsequent demand for data centers that could enable cloud-based computing — plus even more interest in video games while everyone was stuck indoors — accelerated Nvidia's revenues even further.

Nvidia's fans argue that its yawning lead was earned by making an early bet that AI would take over the world — its chips are worth the price because of its superior software, and because so much of AI infrastructure has already been built around Nvidia's products.

Will Nvidia stock reach $1000 : Has Nvidia stock passed its peak The average price target of 41 analysts suggests 13.7% upside with a 12-month price target of $989, according to TipRanks.

What will Nvidia be worth in 5 years : Consensus estimates predict Nvidia's earnings will increase at an annual rate of just over 35% for the next five years. Based on the company's fiscal 2024 earnings of $12.96 per share, its bottom line could jump to $58.11 per share after five years, assuming it does increase at the predicted rate.

Is Nvidia a long-term buy

Shares offer upside for new long-term investors

Analysts expect earnings per share of $24 this year, pricing the stock at 37 times earnings. Analysts also believe earnings will grow by an average of 35% annually over the next three to five years.

Assuming Nvidia is still trading at the same forward P/E, its stock price could reach $3,360 by the end of 2030, or 328% above the current share price. That would put its market cap at over $8 trillion.So yes, Nvidia just might be able to grow that a $20,000 investment into a cool million, but it's a long road to that ambitious target and many things can go wrong along the way.

Can Nvidia become a trillion dollar company : So there is a solid possibility of Nvidia becoming a $3 trillion company by the end of next year. Investors should consider buying Nvidia right away because it is trading at 38 times forward earnings, a discount to its five-year average forward earnings multiple.