Nvidia Faces Uphill Climb to Justify Sky-High Valuation
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Nvidia is a clear leader in AI hardware, but its valuation requires spectacular growth for years to justify current price.
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Nvidia shares are priced for nearly 100% earnings growth each year through 2025. Very challenging to achieve.
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Nvidia has history of being cyclical; growth could slow after AI infrastructure buildout peaks.
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Competition will limit Nvidia's margins over time. Makes growth projections harder to hit.
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Nvidia may be a "stock that got away," with lots of uncertainty in growth forecasts. Tread carefully if investing at current valuations.