It's sometimes difficult to measure Nvidia's amazing growth.
But this infographic, by Sonu Varghese, global strategist at Carson Group, helps put things into perspective.
It shows how Nvidia's NVDA,
Its earnings – or, more accurately, analysts' forecasts for its 12-month earnings – have risen far beyond its share price, in effect resulting in a multiple of 102 points of contraction over the past two years.
This doesn't mean Nvidia is necessarily cheap, Varghese said in a message on social media service X.
“There's a runway here. Of course, how long can they keep printing profits like this… that's the question.” “There's operating leverage as well, as profits rise while sales grow. So margins are increasing.
As MarketWatch's Therese Politi points out, Nvidia's margins in the chip space are only surpassed by ARM Holdings ARM,
Microchip designer.
Nvidia stock rose 16% to $785.38 on Thursday after the microchip maker beat fourth-quarter revenue expectations by about $2 billion, and also expected first-quarter sales to be about $2 billion higher at the midpoint.
Nvidia now leads Amazon.com AMZN,
google alphabet,
By market value.
Over the past 52 weeks, Nvidia stock has risen 237.2%.
