Nvidia Stock: Investing In The Biggest Market Mover Comes With Risks


  • Nvidia Corporation’s strong demand drove significant revenue growth and raised expectations for continuous high growth, but I believe the current stock price is largely driven by sentiment and momentum.
  • Despite Nvidia’s 423% YoY growth in Data Center and 262% YoY in total revenue in 1Q FY2025, its EV/Sales TTM of 41.5x is approaching all-time highs.
  • Market consensus on Nvidia’s future growth may be overly optimistic, with potential risks including pull-forward demand, competition, and geopolitical tensions.
  • Investors prioritize future growth over past gains. Despite Nvidia’s revenue tripling over the past three years, any deviation from its current growth trajectory could trigger a deep selloff.

Artificial intelligence processor


How Can NVDA Rally So Much?

It’s difficult to imagine how much that the sentiment of the entire U.S. market is heavily influenced by one stock, Nvidia Corporation (NASDAQ:NVDA). I acknowledge that NVDA’s growth outlook has

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