Nvidia Defies Expectations with Record Revenue Growth
Nvidia's revenue grew by 71% to $253 billion over the past year, more than doubling its net income to about $160 billion.
The company's quarterly revenue growth has climbed from 56% a year ago to 85% in the most recent quarter, with management's guidance calling for revenue of about $91 billion in the next quarter, nearly double the year-ago total.
Nvidia's stock trades at about 21 times forward earnings, which is usually reserved for mature businesses with ordinary prospects, not the largest company in the stock market worth about $5.1 trillion with its current growth rate.
The author of this article disagrees with the market's expectation that Nvidia's extraordinary growth will end soon and suggests that the price tag reflects a misunderstanding of the company's prospects.