Is Nvidia an Undervalued Growth Stock or a Falling Knife?

Nvidia (NASDAQ: NVDA) was one of the market's hottest growth stocks of the past decade. From the first trading day of 2014 to the last trading day of 2024, its stock surged 33,430%. From fiscal 2015 to fiscal 2025, which ended in January, its revenue grew at a compound annual growth rate (CAGR) of 39% as its earnings per share (EPS) increased at a CAGR of 58%.

That breakneck growth was initially driven by its brisk sales of graphics processing units (GPUs) for gaming, which were also used for professional graphics production and cryptocurrency mining. But over the past few years, its data center GPU sales skyrocketed as the generative AI market exploded.

Image source: Getty Images.

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