Reported 24 days ago
Nvidia has experienced remarkable stock growth recently, becoming a market superstar with a staggering 140% return on capital. However, an analysis of its economic profit suggests that recent buyers are at significant risk, as they must rely on Nvidia achieving a 21.4% annual increase in economic profit for the next 20 years to justify its current share price of about $136. Given historical performance and the challenges of sustaining such growth, the reality may not meet expectations, making it a risky investment for those who have jumped on the bandwagon.
Source: YAHOO