As NVIDIA Corporation (NVDA) Becomes Indispensable to the Gaming World, Is It Time to Buy?

That doesn’t mean, however, that NVIDIA will undoubtedly suffer in the gaming market going forward. Remember, NVIDIA is not only tirelessly working to diversify its products into mobile, but is also striving to ensure that its technologies are as pervasive as possible across all platforms. Perhaps most importantly, though, is that NVIDIA is increasingly garnering the loyalty of gaming developers, who matter most to the industry by creating content to fuel the profit-rich global gaming market.

So even though the world is currently excited for the prospects of console dependent gaming with the release of the PlayStation 4 and Xbox One for the time being, it’s safe to say NVIDIA should have no problems both maintaining its record margins and continuing its streak of ridiculous profitability, despite the impending threat to its core PC gaming market.

And remember, NVIDIA also boasted cash and equivalents of $3.71 billion with no debt on its balance sheet at the end of last quarter, compared with its current total market capitalization at just $8.85 billion. As it stands, NVIDIA stock trades at just 15.5 times last year’s earnings. When you back out all the cash, though, NVIDA stock’s price to earnings ratio drops to under 9.

As a result, I’m convinced that anyone who owns NVIDIA stock now stands to be richly rewarded, even as shareholders wait for the company’s cloud-based gaming ambitions to come to fruition down the road.

The article As NVIDIA Stock Becomes Indispensable to the Gaming World, Is It Time to Buy? originally appeared on Fool.com and is written by Steve Symington.

Fool contributor Steve Symington owns shares of NVIDIA. The Motley Fool recommends NVIDIA and owns shares of Microsoft.

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