The share price of Nvidia has doubled over the past year, with around 40% of those gains coming in the past month due to positive earnings and increased chatter about the future uses of artificial intelligence. As a manufacturer and designer of computer hardware and software, Nvidia’s graphic processing units are core components of most computer-related activities. Additionally, the company is considered a world leader in AI computing, contributing to Q1 2022 revenue rising 19% from Q4 2021 and net income increasing 44%. However, concerns about valuation may give investors pause, as Nvidia’s price-to-earnings ratio is currently 183. Despite these concerns, Nvidia may still be a worthwhile AI investment option due to its comparative affordability when compared to peer companies and the potential for future growth in the AI sector.
Nvidia Corporation is a technology company based in California that designs and manufactures computer hardware and software.
Mark Rogers is an investing expert who has provided thousands of paying members with stock recommendations from the UK and US markets through the Motley Fool Share Advisor newsletter that he has run for almost a decade.
