Nvidia’s Growth and Cash Flow Support StockStory’s Bullish Case

StockStory made a bullish case for Nvidia, citing an average free-cash-flow margin of 42.5% over the past two years. The publisher said the company’s long-term sales and earnings growth also support its view.

Nvidia’s revenue grew at an annualized rate of 69.1% over the past five years, StockStory reported. Its earnings per share rose at a compounded annual rate of 82.6% over the same period.

StockStory said Nvidia’s cash generation could support investment in new products, returns to investors and market consolidation during industry downturns. It also cautioned that semiconductor revenue can contract after periods of strong growth.

At the time of the article, StockStory cited a share price of $231.49 and a forward price-to-earnings ratio of 18.9. As of 17:37 UTC Friday, Nvidia shares traded at $234.30, up 1.49% since the previous close.