Nvidia Stocks Soar with 1,073% Return Since October 2021
Nvidia is one of the top-performing stocks on the market, having returned an impressive 1,073% since October 2021. The company's shares have beaten the S&P 500 over the past six months, with a gain of 30.5%, thanks to its solid quarterly results.
Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and various end markets. The company's revenue has shown strong momentum, with an annualized growth rate of 69.1% over the last five years.
Moreover, Nvidia's earnings per share (EPS) have grown at a compounded annual growth rate of 82.6% over the same period, outperforming its revenue growth. This indicates that the company has become more profitable on a per-share basis as it expanded.
The company's free cash flow margin is also impressive, averaging 42.5% over the last two years. Nvidia's ability to generate strong cash profitability puts it in an advantageous position to invest in new products and return capital to investors.