Should I buy Nvidia (NVDA) stock today? June 15, 2007
Posted by deminvest in growth stock, nasdaq, Nasdaq stock, NVDA Nvidia.trackback
Yet another high growth stock with honest P/E ratios:
Trailing P/E: 31.58
Forward P/E: 19.13
Qtrly Revenue Growth (yoy): 23.8%
Quarterly Earnings growth (yoy): 43.7%
Cash: $1.31 B, debt: 0 (I love those cash loaded High Tech stars!)
Nvidia makes the best graphics processors on Earth. Windows Vista will require large graphics processing power. So I see a rather bright future for NVDA shares.
There are also interesting rumors about an NVDA buyout…
Democratic Investments by the people for the people 
did you get this pick from watching Mad Money today as Nvidia was Cramer’s speculative play?
I was following Nvidia since May. I waited till now because I wanted to use my zecco.com zero commissions account, which is great
Actually I am not sure whether in May I read about Nvidia by Cramer or by someone else.
I had also reaad somewere that Nvidia chips are so powerful that they are used in some lab for doing some sort of paralel calculations much faster than CPUs.
I do feel a bit “mad” for buying them at a maximum price 🙂
i am curious deminvest how long have you been investing $1000 per month into stocks? if you keep this up for 20 years you will be a rich man i assume.
I am have been investing $1000 every month for 3 years.
Before that I was less disciplined. I was only investing about $1000 every two months for another 7 years.
Because of my “Free stocks strategy” I got back the money of more than half of those trades: when stocks go up 40% I sell enough shares to get my $1000 back and I hold remaining shares.
If Nvidia does me the favor to hurry up rising 40% I wouldn’t mind getting yesterday’s $1000 back.
What I hope is that in 20 years I will have a huge portfolio of free shares and that meanwhile I will continue getting my invested money back as stocks rise.
Question… if you only buy 1 stock a month, what do you do with the $1000 you get when a stock goes up 40%? Do you not add your own new $1000 that month?
Dear Jon,
I don’t reinvest the $1000 in stocks. I use it depending on my needs:
I may buy bonds, I may save for next months’ investments or I may spend that money. I want to treat myself well.
My strategy is designed to allow me to build a large portfolio and get most of my money back. I want my stocks to become free stocks. In a perfect World all my $1000 tokens would come back to me leaving me free stocks at zero cost. It cannot happen every time, because sometimes I pick wrong stocks, but, as a general rule, what I want is:
1) my money back
2) free stocks in my portfolio.
I would definitely buy NVDA. It just came out with some great chips