Is Nvidia (NVDA) a Buy at $940?

Clearly, there are a lot of strong opinions on NVDA. Let me clarify a few common comments that I’m seeing: 1. “You can’t use dividends to value a growth stock.” Again, following the logic of John Burr Williams, a business is worth what you can get out of it—i.e.: dividends—throughout its entire future discounted back to today. In this case, NVDA has substantial value today because it has substantial dividend-paying abilities—both now and in the future.
 2. “No one cares about dividends for NVDA.” I agree; now, NVDA pays out 1.3% of its earnings as dividends. That’s meaningless, especially when its stock price goes up 100% in months. However, as stated in the video, the future dividend projection for NVDA IF it can grow earnings at 20% CAGR and starts to payout 70%+ (which it will when it reaches maturity) is $380 billion. Based on the current market value, that’s an 18% yield-on-cost. If you don’t care about current dividends, fine; I don’t, either. But you should care about future ones; they could be massive.
 3. “You’re just mad you missed out on NVDA.” People seem to think I’m anti-NVDA here. I’m not. I’m only pointing out that market expectations are roughly equivalent to iPhone-level growth. (20%). If you think it can grow faster than that, then NVDA is still a good value. If you think it can’t do 20%, then it’s overvalued. That’s all; the ultimate decision is yours. I’m just pointing out the expectations today and cautioning that past growth doesn’t indicate that future growth will be as easy. I never said it’s in a bubble or can’t do 20%; you likely know more than I do about that topic. Besides, I own some NVDA as part of my portfolio. Stop saying that I hate it; I don’t.
 4. “Valuations are irrelevant.” If that’s the case, you could pay $7 trillion for NVDA, and it wouldn’t be a bad investment. Come on, people. Valuations are difficult, but that doesn’t mean they don’t matter; in the end, valuations are all that matter when it comes to making investments.
 5. “You just took a canned growth rate you saw online.” I don’t understand this one. I backed into the 20% growth rate based on the model described in the video; I never even checked the growth rate for NVDA, nor do I check growth rates for any stock. I think they are trash estimates, so I don’t care. I appreciate all of the great back-and-forth. Keep it civil. We’re all on the same team here—just trying to make smarter investment decisions.Thanks to all of you for continuing to support my work, and especially thank you to all my Patreon & YouTube supporters for helping me increase my research budget to continue bringing quality, data-driven, no-hype investment content to the interwebs! 😎www.patreon.com/nathanwinklepleck

One question please! Is NVIDIA a safe buy to outperform the market this year? I'm tired of these new buys every week, just to make up some assets with low percentage on my $236k portfolio and try to keep everything around 10%.

I've owned NVDA for over 8 years. It's been up and down, but I believe in Jensen Huang and will stick with NVDA until Jensen says otherwise. I know that sounds crazy, but when the financial statements/Jensen, (same to me) tell me to sell, I will. I'm sure I won't sell at the top, but that's OK.

Great video,I agree that many people are considering NVDA as the "Stock of the year." However, I'm curious about which stocks could potentially become the next META in terms of growth over the next decade. I've allocated $200k for investment, looking for companies to make additions to boost performance

AI stocks will dominate 2024 but not just AI. NVIDIA, Alphabet, Tesla are at a better placed to maintain long term growth potential, and provide a platform for other AI companies. I have made more than 200% ROI from NVIDIA with the help of my stocks advisor. With the help of my advisor I agree that stock Like Twoo would also go higher in the next year and a bit high this year with the announcement of launch of its video game.

AI Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look.

I feel investors should focus on under-the-radar stocks, considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered. I don't know where to go here out of devastation.

AI stocks will dominate 2024. Why I prefer NVIDIA is that they are better placed to maintain long term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made.

Bought NVDA at around $290. I invest with a financial advisor who trades for me and I'm compounding a bit over $850k.

Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies. Any advice on this matter would be greatly appreciated.

Been beating myself up a bit that I sold my 53 shares of NVDA at $303 each back in May 2023. Now thinking of liquidating a few other investments to rebuy but afraid to do so. I also currently have 500k in savings making me next to nothing.

Every week I buy more of whatever is the lowest percentage of my portfolio and try to keep everything around 10%. Please what could be my safest buys with $400k to outperform the market in 2024?

Hit 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 17k in last month 2024

I read that Nvidia provides tech for crypto mining services/blockchain transactions. Could the current crypto pump be attributed to Nvidia’s great earnings and should I hold some crypto as well, cos tbh I’m having FOMO with the current crypto price at 64k.

I'm admittedly bummed that I didn't go with my gut instinct & buy bitcoin few months back when it was $20k - $25k range. is it too late to get in and make profits? i have set aside $450k to get fully invested this year

My spouse and I are adding a variety of stocks/ETF to my present holdings for the long term, We've set aside $250k to start following inflation-indexed bonds and stocks of companies with solid cash flows, I believe it is a good time to capitalize on the market for long-term gains, but it wouldn't hurt to know means of actualizing short term profit.

I lost over $70k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Natalie Strayer

I agree that NVDA is seen as the "Stock of the year." I'm interested in identifying potential stocks that could emulate META's growth over the next decade. With $250k allocated for investment, my goal is to retire comfortably.

I have traded NVDA several times, making hundreds of $$$ along the way. Meanwhile, I lost thousands of $$$ by not holding my shares. 🤦🏼‍♂️

Bought NVDA in 2018 @ a current unit cost of $100. Sold 250 shares late last year at $385. One of the worst decisions I’ve made. Those 250 shares would be worth $210k now. But overall I’m still happy.