One of the big stock market technology stories in recent years was the amazing growth of Nafidia (NASDAQ: NVDA). During the past five years alone, NVIDIA has risen 1410 %.

So, how long did you take to convert 1,000 pounds to 10,000 pounds?

The high price of the amazing stock

The answer is about two and a half years.

NVIDIA 2022 shares ended selling less than the current ten price. Therefore, 1K pounds, invested in NVIDIA shares and then its value will be more than 10,000 pounds now.

This is even before taking profits. However, the current yield of 0.03 % is not exactly the things of negative income dreams! Buying shares at the end of 2022 means the return today 10 times above 0.03 % – but still less than 1 %.

In this example, I ignored the effect of exchange rate movements to keep things simple. In fact, although these transformations constitute the risk of buying American stocks as an investor in the UK. Sometimes they can reduce the total return on investment. But the opposite can also happen: this depends on any method (if any). The currency exchange rate moves during the contribution age.

NVIDIA looks great, but it may improve

Even after this strong performance, NVIDIA shares now sell about 51 times of profits.

This is very high for my taste, and for this reason I do not have any plans to add the company to my wallet today. However, it is amazing that the price ratio to profits is not higher, given the extent of NVIDIA’s arrow’s performance in a wonderful way in recent years.

This reflects the fact that despite the high price of the stock, it is also profits.

Last year, for example, NVIDIA reported basic profits of $ 2.97. For 2022, the equivalent number was $ 0.18.

Therefore, while the stock price has risen, it has actually grew less in the time frame of profits, which means that NVIDIA shares are cheaper today than it was in 2022.

Can this type of success continue?

NVIDIA has a widespread and profitable business model. It has a lot of royal chips designs as well as a large current customer base. In the context of the increasing demand for chips led by artificial intelligence needs, this may mean that work is still growing quickly. NVIDIA shares this month reached the highest level-but if work continues to perform well, I think it might rise.

Why are I waiting for

However, although I see reasons for a feeling of rusting towards expectations, the current share price does not provide me with a kind of safety margin I am looking for when investing.

After all, the strong demand for strong chips on AI is the beginning of larger things-but this may be a one-time edge before the demand returns to low levels again.

NVIDIA has a lot of monopolistic knowledge, but competitors are working hard to steal their own career. International trade conflicts can also make NVIDIA to continue to grow in some markets.