In this article, we discuss the 5 Best Tech Growth Stocks to Buy Right Now. If you want to read our detailed analysis of these companies, go directly to the 10 Best Tech Growth Stocks to Buy Right Now.
5. NVIDIA Corporation (NASDAQ: NVDA)
P/E Ratio: 79.79
While AMD designs both central processing units (CPUs) and graphics processing units (GPUs), another Santa Clara chip designer, NVIDIA Corporation, is known for inventing the modern-day GPU. NVIDIA is also one of the most fast-paced companies in the world, which is now targeting the emerging AI and machine learning segments. While originally a GPU designer is known for its close relationships with chip foundries, NVIDIA has now diversified its product lineup to launch a new CPU that targets datacenters, provides a virtual environment to several of the world’s biggest companies to finetune their manufacturing systems, and plans to target even more segments through the proposed acquisition of the British chip design house Arm Ltd.
NVIDIA’s shares closed at a price of $48.36 in 2017 and its closing price on Thursday, August 26 2021, was $220.68, which makes for an impressive growth of 356% in three years. More importantly, despite its higher revenue, NVDIA’s P/E ratio of 79.79 indicates that its bets on emerging technology sectors are playing well with investors.
In its Q2 2021 investor letter, Baron Opportunity Fund highlighted a few stocks and Nvidia Corp. (NASDAQ: NVDA) is one of them. Here is what the fund said:
“NVIDIA Corporation is a fabless semiconductor company and a leader in gaming cards and accelerated computing chips. Shares of NVIDIA rose in the second quarter on financial results and guidance significantly above Street expectations, as it benefited from the upgrade cycle in its gaming franchise along with continued AI-related strength driving its data center segment. NVIDIA’s total revenues of $5.66 billion beat Street expectations by $266 million, growing 84% (including the benefit of acquisitions, 65% organic), with its gaming business growing over 100% and its data center business expanding nearly 80%. We remain confident in NVIDIA’s leading position in gaming, data centers, and autonomous machines.”
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