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NVIDIA (NVDA) deserves to be a top portfolio in the long term, partly because of the lucrative profit margins, says an experienced investor.
“I have no company with operational margins such as fat as Nvidia – they are ridiculous,” said founder and founder of Navellier & Associates and chairman Louis Navelier on the opening podcast of Yahoo Finance (see video above or listen below).
Navellier is right in that assessment.
Given the broad lead in the innovation of semiconductor, Nvidia has been offered premium prices for years. The trend is only accelerated in the current cycle led by powerful AI chips such as Hopper and, soon, Blackwell.
Yahoo Finance analysis shows that NVIDIA’s operational profit margins went from 39.9% for the financial year ending on January 31, 2021 to 58.1% for the financial year ending on January 28, 2024. When Nvidia reports on 26 February, analysts estimate It could report an operational margin of 67.5% for last year. Before 2025, the street thinks that Nvidia’s operational margins will be around a similar level.
Read more: How does Nvidia earn money?
“Marge extension creates many profit surprises,” says Navellier about why it is difficult to sell from Nvidia. ‘You want positive revisions. The analysts are notorious [for] underestimated. And so while the stock is institutionalized, you just want to drive on it for as long as possible. “
Navellier said he has been in Nvidia for customers since May 2019.
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The street holds on to Nvidia and will be in its market movement report on Wednesday after the end of the trade.
Despite the Deepseek-based Deepseek that fluctuates the Super-Bullish AI thesis earlier this year, Wall Street Nvidia still sees the global build-out of AI infrastructure. Aggressive 2025 capital expenditements by hyperscalers such as Amazon (AMZN) and Meta (Meta) shared during this profit season underlines the point.
However, that does not mean that there are no signs of caution in the Nvidia winning report.
Yahoo Finance data reveals that Nvidia’s first quarter of a profit per share (EPS) trend has been driven modest in the last 30 days. The street has also performed its estimates of 2025 EPS on Nvidia for more than 60 days.
NVIDIA is also one of the most cheap-rated AI shares, because some use a wait-and-see approach to the quarter and the guidance.
On a forward price-profit (PE) Multiple basis, Yahoo finance data shows that NVIDIA trade with 29 times forward income. Broadcom (AVGO) and Marvell Technology (MRVL) are appreciated 35 times and 41 times respectively. Arm Holdings (arm) clocks in 72 times.