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Nvidia Is About 4% From Becoming the First $6 Trillion Company. History Says the Milestone Itself Tells You Little.
The Motley Fool·
Nvidia is approaching a $6 trillion market cap milestone, but historical analysis of past trillion-dollar milestones shows the milestone itself is not predictive of future stock performance. What matters most is earnings growth relative to valuation multiples. Nvidia's strong earnings growth (120% EPS increase last quarter) and relatively low P/E ratio of 15x suggest the stock could continue climbing if earnings growth outpaces valuation compression.
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