Believe it or not, Wall Street looks like it is starting to fall out of love with NVIDIA [NASDAQ:NVDA]. The AI chip giant reported revenue of USD 39.3 billion, up 78% from a year ago, and well above the $38.1bn expected by analysts, but that does not seem to have been enough.
NVIDIA's net income was a staggering $22.1bn, beating expectations of $19.8bn. Guidance for the next quarter was also strong, with Nvidia forecasting $43bn in revenue, slightly ahead of the $42.1bn Wall Street expected.
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But despite these stellar results, investors do not seem impressed: the key question is whether Nividia's titanic valuation is justified? In this article we take a closer look, but also see who Nvidia measures up against rival AMD [NASDAQ:AMD] and also suggest another stock in the sector investors could look at.
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