If you are like just about every single person I talk to, you own shares of Nvidia. And you probably love to tell your story of how you got in early, or how you should have bought more. But what about Nvidia's valuation? And what about your "position sizing" of Nvidia within your aggregate investment portfolio? After reviewing Nvidia's business, growth trajectory and risks, we discuss its current valuation and prudent position sizing within your personal investment portfolio. We conclude with our strong opinion about owning Nvidia shares ahead of the upcoming earnings announcement.

Nvidia is the dominant seminconductor leader powering explosive megatrend growth in the great cloud migration and now artificial intelligence. And these truly massive megatrends are not coming to an end anytime soon. However, there are multiple glaring “red flags” for Nvidia. In this report, we review the business, growth, market size, current valuation, moat and then four massive red flags investors need to consider. We conclude with our strong opinion on investing.

Nvidia is a once-in-a-generation stock (it’s up +24,000% in the last 10 years and +207,000% since going public). And if you’re like a lot of people, you’re sitting on massive gains and a relatively large position. If you own the shares in an IRA then capital gains tax is not an issue, but position size may be. In this quick note, we share some thoughts on how much Nvidia you should hold, how much you should sell, and why (i.e. growth opportunities, taxes and risks).

With Nvidia shares now up more than 45% this year (and up over 1,870% in the last 5 years) some investors are again wondering if the stock is overpriced. On one hand, the semiconductor industry is notoriously cyclical, and big price pullbacks (60% to 80%) are not uncommon. On the other hand, Nvidia benefits enormously from two megatrends (artificial intelligence (“AI”) and the great cloud migration/ digitization), and the share price gains may still just be getting started. In this report, we take a closer look at Nvidia’s current valuation versus 40 other top chip stocks, share our views on what sets it apart, and then conclude with our strong opinion on investing.

I wrote a positive report about Nvidia (NVDA) in 2009 (see image below), and since then the shares are up over 17,347%. I believe Nvidia shares can still go dramatically higher from here (driven by momentum and investor exuberance about artificial intelligence, in particular), but based on valuation, there are other (newer and smaller) high-growth stocks that are also worth considering (such as the 40 included in the detailed data table in this report). After reviewing Nvidia’s business and current valuation, we highlight a couple names from the list that are also particularly attractive, and then conclude with our strong opinion on investing.