NVIDIA is no longer the future. It is for now.

Why NVIDIA Stock is a dangerous buy for the far future

Shu Hasegawa
Published in
12 min readJul 17, 2022

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Photo by Christian Wiediger on Unsplash

Nvidia (NVDA) had built a dominant empire in the GPU market over the last few years, expanding into various sectors of the tech industry as its chips power a future of automation and innovative technology.

Consequently, its stock has seen unnaturally monstrous growth in price, growing 81.28% in 2017 and more recently, 125.29% in 2021.

While some of these returns can be attributed to the increased demand for technology during the pandemic and ongoing trends in the tech industry, Nvidia deserves credit for its innovation and maintaining great financial health.

Basics

Growing profit margins, revenue, free cash flow, and earnings per share serve as all the right indicators that Nvidia is a healthy company and an attractive stock investment. In terms of debt, Nvidia’s current ratio remains comfortably high and its Debt to Equity ratio remains comfortably low.

Moreover, its high Return on Equity signals high profitability, and though its ROE saw a minor dip in the past few months, it has been travelling along a steadily increasing trend on a long-term basis.

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Shu Hasegawa
The Trader

Kyan Chiang - 6X Top Writer. I write about finance and money. Buy me a coffee: https://www.buymeacoffee.com/shuhasegawa