And during the latest earnings release, the cloud segment for Nvidia saw revenues double compared to the prior year. So the current stock price is justified.
Speaking of earnings, overall earnings per share came in at $1.33, beating by $0.26. Revenues hit $2.6 billion, an increase of 32%. This marked the 7th straight quarter Nvidia grew revenues by at least 25%.
The Future For Nvidia
As noted, the company has a solid grasp on the processor industry. They are by far the leader of the pack. In fact, they resemble Intel in many ways from 20 years ago. Back then, Intel was a powerhouse company and the stock was a behemoth.
There is nothing that is going to slow down Nvidia at this point. They are growing their data center operations (cloud). They are the provider of chips for most of the new technology coming to market. And I haven’t even mentioned bitcoin yet.
If bitcoin continues to grow in users, guess what processors are powerful enough to mine for bitcoin? The answer once again is Nvidia.
Final Thoughts
I rarely say making money on a stock is guaranteed because things can and do happen. But Nvidia is doing every single thing right. They are positioned well for current and future growth and there is nothing that shows they cannot continue on this torrid pace of growth.
While a stock price of more than $200 might seem pricey, remember that its price is a reflection of where investors think it is headed. This is why Amazon is trading over $1,000 a share. It wouldn’t surprise me in 10 years if Nvidia is knocking on the door as well.
This author has no positions in any stock mentioned and does not plan to open any positions in any stocks mentioned for at least 72 hours after publication of this article.
This article was republished with permission from Modest Money.
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