Why I'm Still Holding Nvidia (NVDA) Stock Despite Its Sky-High P/E Ratio
It has been growing at a breathtaking pace, but its shares don't seem overvalued.
Overview
If you don't already own shares of semiconductor giant Nvidia (NASDAQ: NVDA), you probably wish you did. The stock has averaged annual gains of 63% over the past decade and would have turned a single $10,000 investment 15 years ago into $7.5 million (with dividends reinvested) or $6.9 million (without the reinvestment of dividends).
Is it too late to buy the stock now? I don't think it is. I've been a shareholder for only a year or two, and I'm planning to hang on -- despite the stock's having a steep price-to-sales ratio of 17 (as of Aug. 26).
Image source: The Motley Fool.
Details
Source
Originally published at www.fool.com.
Related Articles
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.