Tue Feb 25 15:00:00 UTC 2025: ## Nvidia’s Booming Profits Fuel Investor Confidence Despite Cautious Notes
**New York, NY** – Veteran investor Louis Navellier is bullish on Nvidia (NVDA), citing its “ridiculous” profit margins as a key reason to hold the stock long-term. Nvidia’s operating profit margins have soared from 39.9% in fiscal year 2021 to a projected 67.5% for fiscal year 2024, driven by strong demand for its AI chips. This margin expansion, Navellier argues on Yahoo Finance’s *Opening Bid* podcast, consistently leads to positive earnings surprises, making it difficult to sell the stock. He has held Nvidia for clients since 2019.
Despite this optimism, some cautionary notes are emerging. While Wall Street remains largely positive about Nvidia’s prospects in the burgeoning AI market, recent data shows a slight downward trend in first-quarter earnings-per-share estimates and a plateau in 2025 EPS projections. Furthermore, despite its high valuation (29 times forward earnings), compared to competitors like Broadcom and Marvell, some analysts, such as David Bahnsen of The Bahnsen Group, express concerns, arguing that Nvidia’s valuation assumes a lack of competition which is not the reality of the market.
However, the overall sentiment remains positive, fueled by aggressive capital expenditure plans from tech giants like Amazon and Meta, underscoring continued investment in AI infrastructure. Nvidia’s earnings report, scheduled for February 26th, is expected to be market-moving.
First Piper 