Nvidia Earnings Surprise: Why Volatility Makes Cautious Investing Crucial

Nvidia has reported impressive earnings of $38.3 billion in revenue and 89 cents per share, surpassing expectations. However, the stock's reaction has been highly volatile, fluctuating between a 3% increase, a 4.5% decrease, and back up again. This volatility highlights the importance of principle-driven investing. While Nvidia is a strong company with a 78% year-over-year revenue increase, driven by booming data center sales, its gaming revenue is declining. Although their balance sheet is solid, stock valuations remain high. After analyzing the stock, even with aggressive growth assumptions, the numbers suggest a cautious approach.