Nvidia has been the hottest stock in the market for the past year, with its rise extending longer than many investors expected. In a short period of less than two years, Nvidia’s stock has increased by more than 600%!
Even among the “Magnificent 7,” Nvidia reached the $2 trillion market cap faster than both Apple and Microsoft.
It also claimed the top spot on the chart for achieving the largest single-day market cap gains, surpassing Meta for this position just 20 days later.
This has led many investors to wonder if Nvidia is in bubble territory.
However, answering this question is not straightforward, as Nvidia has substantial fundamentals to justify its phenomenal run.
Looking at its latest quarterly results, Nvidia reported a 265% revenue jump year-over-year (YOY) and earnings up by 769% YOY. There’s simply no other company of this size growing at such a dazzling speed, with the next highest revenue growth being Meta at 25%.
Moreover, Nvidia is not only growing but also charging premium prices for its coveted GPUs, allowing the company to enjoy a 56% profit margin, which is much higher than that of the rest of the “Magnificent 7.”
Nvidia CEO Jensen Huang stated in a conference call with analysts that “fundamentally, the conditions are excellent for continued growth,” implying confidence that this growth can sustain through 2025 and beyond. The guidance for the next quarter is revenue of $24 billion, which would represent a 234% YOY growth, with no signs of slowing.
Analysts and investors are divided on whether Nvidia is priced appropriately. Some argue that the growth rate justifies its current valuation and does not render it expensive, while others believe that the price run-up is too high and unsustainable. One of our writers valued it at US$425.24.
There are indeed many opinions on the matter, making it challenging for investors to make a decision. For such investors who are looking to capture this opportunity but do not want to put all their eggs in one basket – Syfe offers an intriguing product on its platform bundle called “bundles”.
For investors who are captivated by the “Magnificent 7,” a group of big tech companies that have grown increasingly dominant over time, there’s a “Magnificent 7” bundle which equally allocates investment across these seven stocks, including Nvidia, with a minimum investment of just US$100.
Syfe’s brokerage fees are highly competitive going as low as US$0.99 per trade for US stocks, and it offers at least 2 free trades per month. Normally, purchasing these seven counters would cost US$8.12, but Syfe has made this even more attractive by offering a 50% discount, reducing the cost to US$4.06!
Indeed, there are more bundles available, and two others have caught my attention.
For instance, there’s an “AI Revolution Bundle” that allows for easy investment into 5 counters, of which 3 are AI stocks—Nvidia, Microsoft, and Alphabet—and the remaining two are AI-themed ETFs: Invesco AI and Next Gen Software ETF (IGPT) and Global X Artificial Intelligence & Technology ETF (AIQ).
The minimum investment remains the same at US$100, and the commissions are just US$2.44, making it cheaper than a McDonald’s Value Meal.
If you’re a fan of Warren Buffett, there’s a bundle designed for you as well. This bundle comprises the top 8 stocks held by Berkshire Hathaway. Given Berkshire’s significant investment in Apple, the bundle is structured to reflect this, allocating about half of the investment dollars to Apple stock when you opt for the bundle. This provides a convenient method to emulate leading investors’ strategies without the need to individually track and purchase each stock, which could be more costly.
Below is a snapshot of the available bundles for you to consider. I believe you’ll find something that aligns with your interests, and it’s worth noting that Syfe plans to add more bundles in the future.
Beyond the convenience of bundles, you have the flexibility to purchase individual stocks listed in both the US and Singapore, not limiting your investment options to the bundles alone. Syfe will also include Hong Kong stocks in the near future.
Moreover, Syfe transcends the brokerage model. It’s a comprehensive investment platform that provides a range of services, including managed portfolios of stocks, bonds, and REITs, as well as cash management solutions to enhance your interest earnings. This broad spectrum of offerings makes Syfe a versatile choice for investors looking to manage and grow their wealth in a variety of ways.
Syfe is offering a promotion for you:
- Enjoy up to 6 months of fee waivers on Syfe’s Managed Portfolios and up to S$100 cash credits on US trades when you start investing with Syfe Brokerage. Terms and conditions apply.
- Eligibility: New to Syfe clients who have never registered or funded before
- Promo Code: DRWEALTH2024
- Promo is valid till 30 April 2024
Do check it out and here’s the link to sign up.
This article has been sponsored by Syfe, with the views expressed herein being those of the author. This advertisement has not been reviewed by the Monetary Authority of Singapore.