Nvidia is at a crossroads

BY ANDREW GIOVINAZZI

March 2, 2025

Yo Pit Crazies,

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Nvidia Inc (Ticker: NVDA) is one of the great growth stories of the last 10 years. There is 0 doubt. But even great growth stories can slow down. The idea is if there are interesting and great trades in a stock that is slowing down.

But there are. NVDA once again produced massive sales and is on track to earn $4.00 per share this year in earnings with the massive growth. But even with that, the stock is not sniffing anywhere near all time highs with all time high earnings.

6 month NVDA chart with 1 day candles

That is unfortunate, but also a different kind of opportunity.

NVDA is switching gears from a growth stock to an income stock

That can change of course as it did with Microsoft Corp (TIcker: MSFT) from 2000 to 2012. MSFT was the best income stock ever, paying a dividend and not dropping below $20. Then went on a 20x tear from 2012 to 2025 after the cloud changed the game.

At $100 NVDA will likely get to a 25x earnings multiple which is reasonable with 50% growth rates. The market for high speed chips is only beginning to be understood. Strategies that capture the stock at a lower price with a good chance for gains will be winners.

Stay tuned for more on that this week.