Largely because I don’t spend a lot of time researching stocks. But as I have just reached a milestone in my work project utilizing NVidia Jetson Nano, and just ordered a personal Jetson nano to build a home workstation, I decided to check out the stock. The P/E is at over 50 now, after a lot of stock gains this year (no doubt resulting from the market anticipating what I’ve learned practically).
Such a high P/E suggests that the stock is over-valued, but I see incredible long term profitability for NVidia, as their GPUs overtake CPUs as the dominant tool for massively parallel computing power, whether it is cloud based or within local desktops and laptops. And with the growth of distributed home voice recognition systems (such as Alexa and OK Google), all of which require massively parallel cloud computing with machine learning, we can only expect more demand for NVidia products, and as those home assistant systems are upgraded to offer more and more capability, long term demand is assured.
