From Taki Tsaklanos: NVIDIA Corp was the revelation of the year in the stock market. The stock dipped at $25 early 2016 and peaked last week at $120, a 5-fold increase. Obviously nobody buys at the bottom and sells at the very top, but still there was huge potential in this stock.

One reader asked whether this stock is still worth buying at this point.

Although we do not exclude a further rise, we would first wait for the outlook which the company will bring. In the last quarter, the company came with a shocking growth in its gaming division. That can certainly last, but we want to see a confirmation of that outlook.

Revenue grew 30% last quarter and the earnings per share doubled in that same period. That is certainly amazing. Can it last however? The quarterly result should bring clarity.

Furthermore, the stock got ahead of itself with a parabolic rise. We would rather get in on a pull back. Investors who really want to get in, can start a phased buy ‘program’, starting with a first purchase with the next dip.

In other words, be careful when buying this stock is the best option, to avoid buying at the very top.

NVIDIA Corporation (NASDAQ:NVDA) closed at $106.74 on Friday, down $4.69 (-4.21%). Year-to-date, NVDA has gained 226.47%, versus a 10.78% rise in the benchmark S&P 500 index during the same period.

This article is brought to you courtesy of Investing Haven.

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