Is Nvidia Stock a Buy Now?

The stock is on a tear, and it could sustain it thanks to AI.

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Is Nvidia Stock a Buy Now?

By Harsh Chauhan – May 30, 2023 at 5:07AM

KEY POINTS

Nvidia's guidance indicates that the company's growth is about to accelerate sharply.

Analysts have raised their revenue expectations for Nvidia substantially for the next three years.

The stock is expensive, but it has the potential to justify its rich valuation.

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The stock is on a tear, and it could sustain it thanks to AI.

It would be an understatement to say that Nvidia (NVDA 2.99%) crushed Wall Street's expectations with its outstanding guidance when it released its fiscal 2024 first-quarter results for the three months ended April 30 on May 24. The next day, shares of the graphics card specialist surged nearly 25% as investors were wowed by its eye-popping guidance.

The latest surge has brought Nvidia's year-to-date gains to a whopping 166%, which leads to the question of whether it is too late for investors to buy this high-flying semiconductor stock. But before trying to answer that question, let's see why the market rewarded Nvidia so handsomely aftejj7r its latest quarterly report.