Nvidia stock continues to impress investors.<\/p>\n
NVDA surged 150% in 2024\u00a0already.<\/p>\n
And has gained an impressive 1,700% since I named Nvidia the best stock to own for the next 5 year back in\u00a02018<\/a>.<\/p>\n Given all this, the question on every investor\u2019s mind is how much higher can NVDA stock\u00a0go?<\/p>\n Have you seen this chart\u00a0before:<\/p>\n It compares Nvidia stock today to Cisco during the Dot-com\u00a0bubble.<\/p>\n Cisco Systems connected the world to the internet. Its switches and routers allowed computers around the world to easily communicate with each\u00a0other.<\/p>\n As businesses rushed to build websites in the \u201990s, they tore the hinges off the door to buy Cisco\u2019s products.<\/p>\n Its stock shot up 100,000% in 10 years\u200a\u2014\u200aturning every $1,000 invested into a million\u00a0dollars.<\/p>\n Unfortunately, once the dot-com bubble burst, Cisco crashed 90%. Many investors believe Nvidia is about to suffer a similar\u00a0fate.<\/p>\n There\u2019s just one problem\u2026 the AI bubble is far from the\u00a0top.<\/a><\/p>\n Don\u2019t forget that ChatGPT isn\u2019t even two years\u00a0old.<\/p>\n Big tech firms are locked in an AI arms race and they\u2019re spending insane amounts of money on\u00a0it.<\/p>\n We (RiskHedge<\/a>) ran the numbers and found this is one of the largest\u200a\u2014\u200aif not the<\/em> largest\u200a\u2014\u200ainfrastructure buildouts in\u00a0history.<\/p>\n The so-called hyperscallers\u200a\u2014\u200aMicrosoft (MSFT), Alphabet (GOOG), Amazon (AMZN), and Meta Platforms (META)\u200a\u2014\u200aspent $52 billion in 2Q of 2024 on AI, up +54% from just a year ago. And they plan to spend even more in the\u00a0future:<\/p>\n And those are just four companies\u2026<\/p>\n Elon Musk\u2019s AI startup xAI just built the biggest AI chip cluster ever. He connected together 100,000 Nvidia H100 AI chips, tripling the previous\u00a0record.<\/p>\n And guess which AI stock gets to profit from all the AI infrastructure spending? Nvidia. The fundamentals couldn\u2019t be stronger for the AI chip\u00a0maker.<\/strong><\/p>\n Most investors think Nvidia is way overvalued. But that\u2019s hardly the\u00a0case\u2026<\/p>\n Yes, it\u2019s trading at 36.5X forward earnings, which is certainly not\u00a0cheap.<\/p>\n But realize that Nvidia is trading on the cheaper side of its forward-earnings valuation in the last 3\u00a0years:<\/p>\n Source: Koyfin<\/em><\/p>\n Because although its stock price has surged, its expected profits have surged even\u00a0faster.<\/p>\n Nvidia also trades at a cheaper valuation than its closest competitors\u200a\u2014\u200aAMD (AMD) and Intel (INTC)\u200a\u2014\u200aeven though it\u2019s a much better\u00a0stock.<\/p>\n Source: Koyfin<\/em><\/p>\n And remember Cisco? At the top of the Dot-com bubble, it was trading at a crazy forward PE of 131. That\u2019s four times more expensive than Nvidia is\u00a0today.<\/p>\n Bottom line: Nvidia is fairly\u00a0valued.<\/p>\n I remain bullish on NVDA. It\u2019s sitting at the center of the artificial intelligence revolution.<\/p>\n But eventually, there will be a time to exit this investment.<\/p>\n Here\u2019s the number one signal I\u2019m looking for that will tell me when to sell Nvidia: The \u201cIPO\u00a0curse.\u201d<\/p>\n I\u2019m struck by how many times the leading company in a hot sector has gone public and marked \u201cthe\u00a0top\u2026\u201d<\/p>\n The AOL-Time Warner merger in 2000\u200a\u2014\u200astill the largest ever\u200a\u2014\u200aculminated in the dot-com\u00a0bust.The Blackstone (BX) IPO in 2007 coincided with the top for financial markets and preceded the Great Recession.Glencore\u2019s (GLNCY) 2011 listing marked the peak in the commodity super-cycle.Coinbase\u2019s (COIN) IPO looks like it marked a top for\u00a0crypto.<\/p>\n We\u2019re at least a year away from a high-profile AI IPO. This tells me the AI trend, and NVDA stock with it, has more room to\u00a0run.<\/p>\n Conclusion: Nvidia stock remains a buy in\u00a02024.<\/strong><\/p>\n ***<\/p>\n For more insights and analysis, <\/strong>subscribe to my investing letter The\u00a0Jolt\u26a1<\/em><\/strong><\/a>.<\/em><\/strong><\/p>\n I publish fresh research every\u00a0M\/W\/F.<\/p>\n Click here to subscribe<\/a>.<\/p>\n \u2014 Stephen McBride, Chief Analyst at <\/em>RiskHedge<\/em><\/a><\/p>\n Is Nvidia stock a buy after surging 150% in 2024?<\/a> was originally published in Coinmonks<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>","protected":false},"excerpt":{"rendered":" Or will Nvidia crash\u00a090%\u2026 Nvidia stock continues to impress investors. NVDA surged 150% in 2024\u00a0already. And has gained an impressive 1,700% since I named Nvidia the best stock to own for the next 5 year back in\u00a02018. Given all this, the question on every investor\u2019s mind is how much higher can NVDA stock\u00a0go? Is Nvidia […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-10022","post","type-post","status-publish","format-standard","hentry","category-interesting"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/10022"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10022"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/10022\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Is Nvidia still a buy or will Nvidia crash\u00a090%\u2026<\/h3>\n
Fact is, the AI revolution is just beginning\u2026<\/h4>\n
Is Nvidia stock overvalued or undervalued?<\/h3>\n
When to sell Nvidia\u00a0stock?<\/h3>\n