Should You Own NVIDIA in 2014? Two Fools Debate

With 2014 just starting, investors may be thinking about which stocks they want in their portfolios throughout the year. In this segment of Two Fools Debate, Fool editor Jamal Carnette and contributor Sam Mattera discuss whether investors should own NVIDIA  (NASDAQ: NVDA  )  in 2014.

Sam thinks NVIDIA is an attractive growth stock. Although NVIDIA's mobile chips are seeing competition from Qualcomm (NASDAQ: QCOM  ) and Intel (NASDAQ: INTC  ) , he notes the NVIDIA's continued push into new markets: this past week, NVIDIA announced a partnership that will have its mobile chips power several cars' infotainment systems, and it unveiled its new, high-powered Tegra K1. Sam also thinks NVIDIA could grow its market share in GPUs with its new G-Sync technology.

In contrast, Jamal thinks NVIDIA could be overvalued. Its current price-to-earnings ratio, near 20, makes it a more expensive stock than its rivals. That's particularly detrimental, as its seems the chip business is becoming increasingly commoditized. Jamal also notes that NVIDIA's tablet chips aren't to be found in many tablets.

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Read/Post Comments (3) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 12, 2014, at 2:16 PM, BG2388 wrote:

    The title says 2013 and it is 2014

  • Report this Comment On January 12, 2014, at 3:43 PM, will1946 wrote:

    You can debate all you want; NVDA is a buy at its present cheap stock price. It should have and would have broken out of its boring one dollar up or down range in November if it hadn't been artificially knocked down by an analyst and then again last week, just as it, both times, was really beginning to break out.

    You can't keep a good company down forever, although it looks as if there may be an analysts' conspiracy to do just that every time it flirts with 16 dollars.

  • Report this Comment On January 12, 2014, at 6:51 PM, jwtrotter wrote:

    I think the lack of effort in these articles or video discussions is self-evident in how lazy you are with the title. Really, you can't even get the year right?

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