Nvidia Crushed Earnings. Here Are 5 Stocks That Benefit

Well, the company generated more than $96 billion in revenue in its latest quarter, with nearly $54 billion of that flowing to the bottom line as net income.

And since we're talking about the 10-year return for the stock, let's just dive deeper into the financial growth over the past decade.

For comparison, NVIDIA had just over a billion dollars in revenue with net income of about a quarter of a billion in the same stretch 10 years ago by my count care.

That's top line growth of more than 6,600 percent and bottom line growth of more than 20,000 percent.

And that bottom line figure is important, Sean, because that tells us that profit has risen at a faster rate than the stock.

And it's one of the reasons why when you look at NVIDIA's price to earnings ratio, the company's valuation looks pretty reasonable compared to a lot of other names.

Yeah.

So with that said, we know a stock's valuation is also based on where a company is going.

So it was NVIDIA's forecast for next year that Wall Street got really excited about.

The company told us it's expecting sales growth of about 70%.

The analysts were only expecting around 45%.

And John, the company noted that the number would be higher if it weren't for some of the supply chain constraints it's navigating.

So the big takeaway is that NVIDIA eased concerns that AI spending is losing momentum.

Well, the company generated more than $96 billion in revenue in its latest quarter, with nearly $54 billion of that flowing to the bottom line as net income.

And since we're talking about the 10-year return for the stock, let's just dive deeper into the financial growth over the past decade.

For comparison, NVIDIA had just over a billion dollars in revenue with net income of about a quarter of a billion in the same stretch 10 years ago by my count care.

That's top line growth of more than 6,600 percent and bottom line growth of more than 20,000 percent.

And that bottom line figure is important, Sean, because that tells us that profit has risen at a faster rate than the stock.

And it's one of the reasons why when you look at NVIDIA's price to earnings ratio, the company's valuation looks pretty reasonable compared to a lot of other names.

Yeah.

So with that said, we know a stock's valuation is also based on where a company is going.

So it was NVIDIA's forecast for next year that Wall Street got really excited about.

The company told us it's expecting sales growth of about 70%.

The analysts were only expecting around 45%.

And John, the company noted that the number would be higher if it weren't for some of the supply chain constraints it's navigating.

So the big takeaway is that NVIDIA eased concerns that AI spending is losing momentum.