What Bubble? Nvidia Profits Are Rising Even More Than Its Stock
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Nvidia Corp.'s blowout earnings report lifted shares and assured the market that artificial intelligence mania is still going strong. It might also make the stock look cheaper.All eyes were on the chipmaker's guidance for signs about the strength of the AI market, and Nvidia didn't disappoint. With the numbers now in, bulls are swiftly calculating the stock's new price-to-earnings ratio, or how much investors are paying for future growth. “Some investors have been scared to buy because they think the stock is too expensive, but that's been a huge mistake,” said James Demmert, chief investment officer at Main Street Research. “Every time it reports, the P/E shrinks because the E ends up being so much stronger than people expect.” Put another way, Nvidia's earnings have been growi...