$NVDA.US$ After Thursday's sell-off, Nvidia is trading at ro...

$NVDA.US$ After Thursday's sell-off, Nvidia is trading at roughly 40 times this year's expected earnings and 22 times expected sales. Notably, the company's price-to-earnings ratio is less than two times the company's price-to-sales ratio, which reflects the stellar profit margins the business has been serving up lately. But it's still a high-risk, high-reward stock.

Aided by ongoing demand for AI technologies, Nvidia will likely continue to post strong sales and earnings growth for the rest of the year and in 2025 -- but the outlook is a bit murkier further out. The company's business has historically been shaped by cyclical trends, and it's not entirely clear what stage we're at in the current artificial intelligence investment cycle, and what macro backdrop will emerge.

On the other hand, the long-term outlook for AI-related hardware and services demand remains incredibly promising. If you're looking to build positions in artificial intelligence and are willing to embrace near-term volatility, taking advantage of pullbacks in Nvidia could be worthwhile