Nvidia’s Business Is Robust

$NVIDIA Corp(NVDA)$$Philadelphia Semiconductor Index(SOX)$The world feels like it's going to hell in a hand basket, doesn't it? That attitude is being reflected in the stock market, which has had one of its worst starts to the year in many decades. 

Analysts expect 26% revenue growth this year, with estimates calling for double-digit revenue growth in each of the next four years. And remember, analysts have been embarrassingly conservative with their estimates over the last few years. That goes for $AMD(AMD)$as well.

How many high-quality companies are growing revenue and earnings in excess of 20% this year? Not many and yet, NVDA stock has experienced a peak-to-trough decline beyond 50%. It has been halved, yet estimates have hardly budged.

This company is still doing quite well, regardless of what the stock does. That's because Nvidia caters to long-term, secular industry trends. Those trends include things like cloud-computing, supercomputing, datacenters, artificial intelligence and machine learning, gaming, graphics, drones, robotics, the metaverse, autonomous driving and more.

Sure, some of those end-markets may experience a short-term pullback in spending, but generally speaking, the investments will continue. Just because the economy slows, doesn't mean there is less data being created. It doesn't mean people want slower or worse-performing technology.