Nvidia

Yet another high growth stock with honest P/E ratios:

Trailing P/E: 31.58

Forward P/E: 19.13

Qtrly Revenue Growth (yoy): 23.8%

Quarterly Earnings growth (yoy): 43.7%

Cash: $1.31 B, debt: 0 (I love those cash loaded High Tech stars!)

Nvidia makes the best graphics processors on Earth. Windows Vista will require large graphics processing power. So I see a rather bright future for NVDA shares.

There are also interesting rumors about an NVDA buyout…

8 responses to “Should I buy Nvidia (NVDA) stock today?”

  1. witek Avatar
    witek

    did you get this pick from watching Mad Money today as Nvidia was Cramer’s speculative play?

  2. deminvest Avatar

    I was following Nvidia since May. I waited till now because I wanted to use my zecco.com zero commissions account, which is great

  3. deminvest Avatar

    Actually I am not sure whether in May I read about Nvidia by Cramer or by someone else.
    I had also reaad somewere that Nvidia chips are so powerful that they are used in some lab for doing some sort of paralel calculations much faster than CPUs.
    I do feel a bit “mad” for buying them at a maximum price 🙂

  4. witek Avatar
    witek

    i am curious deminvest how long have you been investing $1000 per month into stocks? if you keep this up for 20 years you will be a rich man i assume.

  5. deminvest Avatar

    I am have been investing $1000 every month for 3 years.

    Before that I was less disciplined. I was only investing about $1000 every two months for another 7 years.

    Because of my “Free stocks strategy” I got back the money of more than half of those trades: when stocks go up 40% I sell enough shares to get my $1000 back and I hold remaining shares.

    If Nvidia does me the favor to hurry up rising 40% I wouldn’t mind getting yesterday’s $1000 back.

    What I hope is that in 20 years I will have a huge portfolio of free shares and that meanwhile I will continue getting my invested money back as stocks rise.

  6. Jon Avatar

    Question… if you only buy 1 stock a month, what do you do with the $1000 you get when a stock goes up 40%? Do you not add your own new $1000 that month?

  7. deminvest Avatar

    Dear Jon,

    I don’t reinvest the $1000 in stocks. I use it depending on my needs:
    I may buy bonds, I may save for next months’ investments or I may spend that money. I want to treat myself well.

    My strategy is designed to allow me to build a large portfolio and get most of my money back. I want my stocks to become free stocks. In a perfect World all my $1000 tokens would come back to me leaving me free stocks at zero cost. It cannot happen every time, because sometimes I pick wrong stocks, but, as a general rule, what I want is:
    1) my money back
    2) free stocks in my portfolio.

  8. Investforprofit Avatar
    Investforprofit

    I would definitely buy NVDA. It just came out with some great chips

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