2024-04-29 07:00:00 ET
Investors have been excited about many different growth areas over the years, but few topics have sparked as much enthusiasm as artificial intelligence (AI). Companies with even modest exposure to that area have soared in the past year, sometimes without even showing how they might capitalize on the AI boom.
Nvidia (NASDAQ: NVDA) is an exception to that rule. The chipmaker is directly benefiting from intense demand for its graphics processing units, which form the foundation for data centers that are being built by many of the biggest tech giants on the planet. Nvidia's sales were up a blazing 265% last quarter to $22 billion .
The stock's rally, though, has made the stock an incredibly expensive way to gain exposure to the AI boom. Up more than 400% in the past three years, Nvidia shares are now valued at 34 times sales, making it by far the most expensive of the " Magnificent Seven " stocks.
For further details see:
Missed Out on Nvidia's Incredible Rally? 1 Magnificent Growth ETF to Buy Now.