Everyone wants to invest in the next Tesla (NASDAQ: TSLA), and an examination of analyst predictions suggests Lucid Group (NASDAQ: LCID) has the potential to be it. Sales are expected to grow by 73% this year, with another 96% growth expected in 2026.

There's just one problem with buying the stock at the moment: Lucid shares trade at 6.7 times sales, a pricey valuation for a business that might be unprofitable for at least the next several years. If you dig deeper, however, Lucid shares might be wildly undervalued despite the high price-to-sales ratio (P/S).

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Image source: Getty Images.

This chart shows Lucid Group's true potential

Despite generating less than 1% of Tesla's revenue, Lucid Group still trades at roughly half the valuation of Tesla on a price-to-sales basis. That could all change when the company releases its "mass market" vehicles. Management has previously teased three new vehicle models that will all sell for less than $50,000 a piece.

While these vehicles are still a year or two away from production, they should eventually put Lucid's growth in overdrive. Tesla released its Model 3 in 2017, with the Model Y following in 2020. These two affordable vehicles now account for more than 90% of Tesla's sales -- the primary reason that Tesla's sales have gone from a few billion dollars to more than $95 billion today.

Data by YCharts.

Lucid has a very long way to go before matching Tesla's revenue numbers. But releasing more affordable models is the key to closing the gap. If management is to be believed, the first of several mass market models will arrive sometime in 2026, with more on the way in 2027 and beyond.

It should be stressed that Lucid's financial position isn't incredibly strong right now. It has less than $1.9 billion in cash on the balance sheet, yet it lost nearly $2.4 billion over the last 12 months.

More cash will need to be raised to get these new models to market. However, Tesla's success shows Lucid's true potential.

Should you invest $1,000 in Lucid Group right now?

Before you buy stock in Lucid Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $888,780!*

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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Warren Buffett has long preached the virtues of long-term investing. Buying for the long haul provides plenty of advantages, especially when it comes to compounding and minimizing tax implications. Right now, two Fidelity ETFs seem perfectly designed to provide maximum returns over a long time horizon.

Every investor should own this asset

Most investors don't own any cryptocurrency. And there's good reason for that. Volatility makes most cryptocurrency investments unviable for those seeking safe and reliable returns.

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Plus, the process of buying and selling cryptocurrencies like Bitcoin can be far too complicated for most people. That's why the Fidelity Wise Origin Bitcoin Fund (NYSEMKT: FBTC) is so attractive. For an expense ratio of just 0.25%, investors can get direct exposure to the crypto without the complex tasks of self-custody and tax tracking.

It can take a lot of education to wrap your head around cryptocurrencies and their potential. The industry is rife with misinformation and misleading promises. But Bitcoin, arguably the original cryptocurrency, is a proven and relatively simple asset. Think of it as digital gold.

There are only so many bitcoins in circulation at any given time. And while there is some marginal inflation over time, its total supply is capped, just as there is only so much gold in the ground to dig up.

To be sure, the crypto has significantly more volatility than gold. But it arguably has more upside as well. Its total market capitalization right now is around $2.2 trillion. Gold's total market cap, meanwhile, is above $23 trillion.

So compared to gold, Bitcoin could have 1,000% more upside to go. And that doesn't even include its value as a transactional currency, an advantage gold is fairly limited in.

Expect a lot of volatility here, but investing even just 1% of your assets into Bitcoin might boost your portfolio's total upside potential significantly. Fidelity's Wide Origin Bitcoin Fund makes adding that exposure as easy as buying any other exchange-traded fund (ETF).

If you're looking for high growth potential with traditional stocks, however, check out the promising new ETF below.

Image source: Getty Images.

This Fidelity ETF has high upside potential

Looking to maximize your chances for long-term growth? Consider the Fidelity Cloud Computing ETF (NYSEMKT: FCLD). It's relatively new and shouldn't replace broad market indexes like those that track the S&P 500. But there's no denying that it could add huge long-term potential to any portfolio.

As its name suggests, the Fidelity Cloud Computing ETF invests primarily in businesses that operate cloud computing infrastructure, like Oracle and Microsoft. It also invests in cloud software-as-a-service (SaaS) stocks like Salesforce.

Cloud computing is perhaps one of the biggest sectors that will benefit from the AI revolution. The United Nations predicts that the market will grow from $189 billion in 2023 to nearly $5 trillion by 2033. Much of that value will accrue to cloud computing businesses. Why? It has everything to do with how AI is trained and deployed.

Artificial intelligence requires a lot of computing power. Instead of building this infrastructure themselves, most developers and businesses outsource it to cloud infrastructure businesses like Microsoft's Azure division.

And when it comes to using AI features, most of them will be deployed via cloud SaaS like Salesforce. From hardware to software, cloud computing businesses will benefit strongly from rising AI demand, which is expected to increase at more than 30% per year for the next decade or more.

Fidelity's Cloud Computing ETF isn't perfect. It does have a relatively high expense ratio of 0.4%. And betting on a single sector isn't for every investor. But if you're looking to build a portfolio with high long-term potential without the complexity of managing individual positions, this ETF looks like a reasonable bet.

Should you invest $1,000 in Fidelity Wise Origin Bitcoin Fund right now?

Before you buy stock in Fidelity Wise Origin Bitcoin Fund, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fidelity Wise Origin Bitcoin Fund wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

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*Stock Advisor returns as of June 2, 2025

Ryan Vanzo has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin, Microsoft, Oracle, and Salesforce. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

The AI revolution is here. Over the next decade, many experts believe that the artificial intelligence market will grow from a few hundred billion dollars in value to nearly $5 trillion. Fortunes will be made throughout this growth journey, and one new ETF from popular analyst Dan Ives seeks to give investors a one-stop shop for investing in AI.

Looking to add AI exposure to your portfolio? There are three reasons to consider the Dan IVES Wedbush AI Revolution ETF (NYSE:IVES).

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1. Experts will guide your AI investments

Many investors love to do their own research and select their own individual investments. But when it comes to investing in AI stocks, having some experts along for the ride can help a lot. Right now, there are many popular AI stocks that growth investors are flocking to. But the winners during the next phase or two of these cycles may not be the winners of today.

"I've started this ETF because it's about the second, third, fourth derivatives of AI playing out, and that's the important thing for investors," Ives recently explained. "The AI revolution is the biggest tech theme we've ever seen," he added."There are plenty of other great vehicles out there, but there's only one that encompasses my investing team and the research that investors have trusted me to deliver."

2. Stay 100% invested in artificial intelligence

There are several new AI ETFs out there, but many invest in companies that aren't directly tied to AI. Amazon, for example, is exposed to AI through its AWS cloud infrastructure division. But that division contributes less than half of its total revenue. The movement of Amazon's stock, therefore, may be unduly influenced by its e-commerce division, not its AWS division, which provides it with its most direct AI exposure.

The IVES ETF, meanwhile, aims to maximize your AI exposure by investing in just 30 companies handpicked from Ives's "AI Revolution Theme," which only aggregates stocks with meaningful exposure to AI infrastructure, deployment, and monetization. That includes AI stalwarts like Nvidia, which produces most of the industry's GPUs, and Microsoft, which has a much higher raw AI exposure than Amazon.

Image source: Getty Images.

3. Get in early

The beauty of ETFs like this is that they let you scale up your exposure quickly. Yes, you are getting expert stock selection. You're also making sure your invested capital is as exposed as possible to the actual AI themes you're attempting to target. But by outsourcing your picks to an ETF, you also give yourself the ability to scale up your exposure at a moment's notice without needing to do a bunch of research on individual selections. In short, vehicles like the IVES ETF let you get quick exposure earlier than you would have if you needed to complete all of your own research and allocation decisions.

"Two trillion dollars is going to be spent over the next three years," Ives estimates. "Now, I believe we're still in the bottom of the first inning in terms of this non-inning game for AI. And the second, third derivative beneficiaries of tech are just starting to focus on AI." If you agree with Ives -- that is, if you think that we are still in the very early innings of the AI revolution -- then getting your money to work today rather than tomorrow may give you a chance to lock in early cycle valuations before the rest of the market catches on.

The IVES ETF isn't perfect. It comes with a very high 0.75% expense ratio, which will cut into your profits. It also has no historical track record, adding some level of uncertainty for its performance potential. Plus, Ives himself has said that he doesn't care much for valuations. "I've never been too focused on valuations," Ives recently said. "It's about the themes, the best places, and the disruptors. That's all the work we do in the field."

Investors looking to do their own research, limit fees, and focus on valuation should likely look elsewhere. But for those willing to get instant exposure to expert AI stock selections, the IVES ETF is a promising new investment vehicle for aggressive growth investors.

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of June 2, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Nvidia (NASDAQ: NVDA) has already been one of the best long-term investments in history. Since 1999, shares of the chipmaker have increased in value by more than 340,000%. An original investment of just $3 would have turned into $1 million over that timeframe!

But don't think the run is over. The next few decades should see the company grow its sales immensely, leading to big gains for patient investors. Here's why.

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Nvidia sales will rise for decades to come

Nvidia's business model sits at the very center of the artificial intelligence (AI) revolution. Nearly all AI technologies require massive datasets and compute power to operate. Complex models crunch this data to provide relevant outputs for users. While some models can run locally, most popular models are run on the cloud, using distributed compute power that can scale up and down dynamically based on demand.

What technologies make cloud computing infrastructure possible? Graphics processing units, more commonly referred to as GPUs.

There is a wide variety of companies producing a wide variety of GPUs, each specialized for a different purpose. For a long time, Nvidia specialized in GPUs built for gaming environments. Next-gen gaming consoles and computers need vast amounts of graphics processing power. Specialized chips like Nvidia's allowed the industry to advance, creating better and more visually stunning games for users.

Nvidia recognized the potential of AI before many of its competitors. It invested heavily to make sure its chips and software were able to support the small but promising industry. As The New York Times summarizes:

Over more than 10 years, Nvidia has built a nearly impregnable lead in producing chips that can perform complex A.I. tasks like image, facial and speech recognition, as well as generating text for chatbots like ChatGPT. The onetime industry upstart achieved that dominance by recognizing the A.I. trend early, tailoring its chips to those tasks and then developing key pieces of software that aid in A.I. development.

That software component is perhaps Nvidia's biggest secret weapon. Over the next decade, the AI market is predicted to grow from several hundred billion dollars in value to nearly $5 trillion. Competition for GPUs will surely heat up, but Nvidia's software has created a sort of lock-in for customers.

Scores of AI applications have been built around Nvidia's hardware, and developers have been using its software for years to customize these chips to their exact specifications. Even if its hardware loses its performance edge, this software lock-in should give Nvidia heavy market share for decades to come, not to mention the reputation and capital necessary to continue improving its hardware or purchasing promising upstarts.

Image source: Getty Images.

Big gains will require patience

Trading at 25 times sales, Nvidia stock is far from cheap. But in 2021, shares also traded at roughly 25 times sales, and yet shares have increased in value by nearly 800% since then.

Now that it's a $3.3 trillion business, many argue that Nvidia will face steeper hurdles to fast growth. The law of large numbers may prove this true. After all, it's easier to double in size as a $200 billion company than as a $2 trillion one. But Nvidia has a stranglehold on its market, with some estimates pegging it with a 90% market share for AI GPUs. Meanwhile, the AI market is taking off, and Nvidia's software edge gives it a front-row seat to this growth over the long term.

High-multiple stocks like this can display extreme volatility from year to year. But if you maintain an investing horizon of a decade or more, Nvidia shares can help you turn small amounts into millions of dollars through the magic of compound interest. Just remember: The AI revolution is a multi-decade story, and Nvidia's high upfront premium may take years to fully justify.

But buying high-quality companies with durable competitive advantages operating in long-term growth markets is rarely a poor decision. Just make sure your investing horizon is long enough to fully digest Nvidia's pricey upfront valuation.

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $842,015!*

Now, it’s worth noting Stock Advisor’s total average return is 987% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of June 2, 2025

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Rivian Automotive (NASDAQ: RIVN) shares have surged over the past month, rising in value by roughly 50%. But don't think that it's too late to take advantage. The electric vehicle maker is about to experience a huge jump in growth, a surge that could persist for several years.

Shares still look like a strong buy for patient investors, but there is one particular risk that every investor must be aware of before diving in.

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Rivian's growth is about to explode

It takes a long time to get a new vehicle from the design stage to production and final delivery. A long time. Rivian was initially founded in 2009 as Mainstream Motors. It didn't release its first vehicle, the R1T, until 2021 -- more than a decade later. The R1S, which uses essentially the same platform as the R1T, was released the following year.

It's not surprising that it took Rivian this long. Often, new vehicles from new manufacturers like Rivian involve novel design and engineering concepts, especially for electric vehicles. Production facilities, meanwhile, need to be built and scaled up from scratch. And then you have the litany of regulatory and safety hurdles to pass, nonetheless sourcing various parts from potentially dozens of third-party suppliers.

Production of the R1T was delayed several times simply due to global chip shortages -- a small but critical component that makes the vehicle possible. And in Rivian's case, you also need to develop the software necessary to not only run the vehicle itself, but also deliver on any promised self-driving capabilities.

One of the biggest barriers isn't even about making the car from a physical standpoint, but funding the car from a capital standpoint. It takes billions of dollars to get vehicles like the R1T and R1S to market, not to mention years and years of patient capital. It's hard to find investors willing to fund a company for more than a decade with zero revenue -- a major reason why so many EV start-ups have gone under over the decades.

When the R1T and R1S made it to market, Rivian's sales exploded from essentially zero to more than $5 billion. Revenue has stagnated in recent quarters due to a lack of new models.

But starting next year, we should see growth surge yet again thanks to the introduction of three new vehicles: the R2, R3, and R3X. All are priced under $50,000, making Rivian's vehicles affordable to millions of new buyers. It will likely still be a year or two until all of these models are in production and on the road, but as we've seen, that's nothing compared to the full timeline involved in bringing new models to market.

We are now in the final innings of Rivian's dormant growth phase. Both 2026 and 2027 should see sales surge to historic levels, and despite the recent stock price spike, shares still trade at under 4 times sales. But before you jump in, you must understand the primary risk factor.

Image source: Getty Images.

Don't buy Rivian stock before understanding this risk

Production timelines rarely go according to plan. So while management expects to start production on the R2 in 2026, don't expect a full production ramp-up until late in the year, and possibly even into 2027. The same will be true of the company's R3 and R3X models, which may not reach customers in any meaningful way until 2027.

Compared to full vehicle production timelines, waiting 12 to 24 months is small potatoes. But for the production ramp to translate into significantly higher sales, it could take several years beyond the start of production. That makes Rivian a multi-year story.

Yes, the valuation is cheap, especially compared to other EV stocks. But it will require years of patience for investors to realize the biggest gains. That's easier said than done.Despite the recent stock price spike, Rivian is still a strong buy. But patience will be necessary.

Should you invest $1,000 in Rivian Automotive right now?

Before you buy stock in Rivian Automotive, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rivian Automotive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $807,814!*

Now, it’s worth noting Stock Advisor’s total average return is 962% — a market-crushing outperformance compared to 169% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of May 19, 2025

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Since going public in 2021, Lucid Group (NASDAQ: LCID) has seen its stock struggle mightily, losing more than 80% of its value in that time period. After the steep decline, however, shares of the electric vehicle (EV) maker trade at a much lower valuation. Over the next few years, sales should grow tremendously. In 2025 alone, analysts expect the company to nearly double its revenue.

This looks like a great time to buy into an exciting growth stock at a discount. However, there are two risks you'll want to monitor before jumping in.

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The next three years will be wild for Lucid Group

Starting out as an electric vehicle maker is extremely difficult. Scores have gone bankrupt over the decades. The main issue has been funding. To start a car manufacturer from scratch, billions of dollars need to be invested over many years. Profitability can take a decade or longer to achieve. The trick isn't necessarily to produce great vehicles that consumers love -- it's to survive financially until scaling becomes possible.

Tesla's historic rise was due to a very particular strategy for growth. The company first created a sports car, the Roadster, which had a high price point affordable only to the very rich. This lowered production costs since volumes would be limited. It lowered the concern for cost control, given that the price points would be very high anyway. It also ensured that its cars would be viewed as luxury items.

From there, Tesla was able to leverage its reputation to build more affordable cars like the Model X and Model S. Then, it could reinvest its growing sales base into even more affordable vehicles, like the Model Y and Model 3. Today, more than 90% of Tesla's vehicle sales are dominated by affordable options like the Model Y and 3. However, the process of getting to this scale was gradual and strategic.

Over the next three years, Lucid will attempt to replicate Tesla's massive growth. Right now, the company only has two vehicles in its lineup: the Lucid Air and the Lucid Gravity. The Gravity is a recent introduction, and sales of the SUV are expected to help revenue growth surpass 75% in 2025.

But the most exciting new models will be revealed in 2026 and 2027. Unlike the Air and Gravity models, both of which can cost upwards of $100,000 depending on options, Lucid's future models are expected to debut under $50,000. Crossing that critical threshold helped Tesla's growth go into overdrive. Lucid's management team anticipates the same for its new mass-market models.

So, this year expect Lucid's sales growth to spike heavily thanks to Gravity's sales ramp. Due to new mass-market models, there's a chance this breakneck sales growth pace can be sustained for several years to come. But there are two risks to this story that every Lucid investor should monitor.

Image source: Getty Images.

Make sure to monitor these two risks

If Lucid can continue ramping Gravity sales this year and successfully introduce three new mass-market models in 2026 and 2027 as management expects, the company's sales growth should far exceed most investors' expectations. But the road forward won't be easy. The company's longtime CEO recently departed, and the firm has far less cash on hand than competitors like Rivian Automotive and Tesla. Plus, Lucid loses far more on each vehicle sale than those two competitors.

TSLA Gross Profit Margin data by YCharts

To get its new vehicles to market, Lucid will need a lot more cash. That will require raising new debt, or, more likely, selling more stock, diluting shareholders in the process. There's no guarantee that the market will be willing to finance this new funding on terms attractive to current shareholders. And like the long list of defunct EV makers attests, there's no guarantee that this funding will come through at all.

Lucid shares are cheap compared to their growth potential over the next three years. But gross margin and liquidity concerns should be closely monitored.

Should you invest $1,000 in Lucid Group right now?

Before you buy stock in Lucid Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $826,385!*

Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 12, 2025

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Nvidia (NASDAQ: NVDA) has a strong history of beating analyst expectations for quarterly earnings and sales. The company has beaten estimates in 9 of the past 10 quarters. According to data compiled by Barchart, Nvidia stock has risen on a majority of those earnings beats, but still fell on several occasions. So while an earnings beat doesn't guarantee a positive price jump, the odds are certainly stacked in that direction.

With so much market and trade uncertainty, it's reasonable to expect a weak earnings announcement from the company next month. But there's reason to believe the opposite could happen. As we'll see, Nvidia stands a good chance of beating earnings estimates next month. That, coupled with the stock being down more than 30% so far this year, could potentially lead to a sharp bump in valuation.

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2 Reasons to believe Nvidia will crush earnings

Nvidia's revenue growth estimates have come down sharply in recent months. Geopolitical tensions have generated uncertainty around global supply chains, especially regarding potential impacts from tariffs. Nearly one-third of Nvidia's sales last year may ultimately be tied to China in some way, whether that's through direct sales to China, related sales to Taiwan, or exports to Singapore that are then reexported to China. Rising pressures between the U.S. and China could make these exports more complicated, expensive, or even impossible to execute.

More importantly, however, end market demand -- especially from data centers -- continues to impress. Nvidia's data center segment experienced 93% growth year over year last quarter. Nvidia's management team has long expected this growth tailwind to continue for years to come. Previous estimates called for data center capital expenditures to hit $1 trillion industrywide by 2032, though that forecast has now been pulled forward to 2030. In a nutshell, the biggest driver of Nvidia's growth in recent years remains intact, and may be even stronger near term than many predict.

But it's not just end market demand that could boost results above expectations. Share buybacks could also play a role. Last August, the company announced a $50 billion stock buyback program. As of last quarter, the company has repurchased around $33.7 billion in shares, leaving $16.3 billion remaining. The share buyback program has already helped fractionally boost earnings per share. And if management was feeling aggressive, it may have stepped up these repurchases given Nvidia's weak share price so far this year. If share buybacks accelerate more than expected, we could see that translate into better per-share results, given the total number of outstanding shares would be lower than most analysts are predicting.

NVDA PS Ratio data by YCharts

Should you buy Nvidia stock before earnings next month?

It's important to remember that betting on a stock's quarterly performance is a difficult game. The numbers over such a short period of time can be difficult to guess. As Nvidia's post-results performance has shown over the last 10 quarters, a company can beat earnings and still see its stock price fall.

Betting on Nvidia shares today should be a long-term decision. Growth estimates have come down sharply, but end market demand should remain high, on average, for years to come. Shares are still expensive at 18.4 times sales, but Nvidia's high growth rates could make this valuation look like a steal a few years down the road.

Will Nvidia beat earnings estimates next month? I bet that it will. But from an investment standpoint, I'm focused more on what happens over the rest of this decade versus what happens a few weeks from now. Weak earnings could even provide an extra buying opportunity for patient investors.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $287,877!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $39,678!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $594,046!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

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*Stock Advisor returns as of April 21, 2025

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Tesla's (NASDAQ: TSLA) stock has come down considerably since the year began. Shares are down roughly 30% in value so far this year, with the stock's price-to-sales ratio falling from over 15 to just 9.2.

On paper, Tesla's valuation looks compelling. But there's one factor that investors must understand before jumping in.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Tesla's stock isn't as cheap as it looks

There's no doubt that Tesla's stock is much cheaper than it was just four months ago. But when you zoom out further, it becomes obvious that most of this crash simply reverted Tesla's valuation to its historical trading average.

In recent years, Tesla's valuation has typically ranged between 5 and 10 times sales. In the closing months of 2024, however, Tesla's valuation soared to more than 16 times sales. The recent correction simply brought the valuation multiple down toward historical norms. In fact, even after the correction, Tesla's price-to-sales multiple remains above its multiyear average, even when including the abnormal levels seen in late 2024 and early 2025.

TSLA PS Ratio data by YCharts. PS Ratio = price-to-sales ratio.

Tesla's growth forecast has picked up since the close of 2024. But even when looking at the company's forward price-to-sales multiple -- a metric that factors in this higher expected sales growth -- Tesla shares still trade a bit higher than their long-term average. And again, those long-term averages include the abnormal levels experienced at the end of 2024 and the start of 2025.

Does any of this mean that Tesla is a poor investment for long-term shareholders? Absolutely not. But the stock isn't as cheap as it seems following the correction, given that the correction began at abnormally high valuation levels.

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• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $276,000!*
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Lucid Group (NASDAQ: LCID) is expected to report earnings on May 6. There's a lot at stake. The company recently experienced some leadership changes, with its longtime CEO departing rather suddenly. The new CEO will need to provide important updates to the company's Gravity SUV sales trajectory, as well as updates on several new mass market vehicles under development.

All in all, it will be a critical quarter for Lucid Group. There are two reasons to consider buying shares before the announcement date arrives.

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Two reasons to buy Lucid Group stock before May 6

Following the launch of its Gravity SUV platform earlier this year, Lucid's revenue growth has picked up considerably. Analysts believe the company could nearly double its sales base in 2025. Compared to competitors like Tesla and Rivian Automotive, Lucid's sales growth this year should be spectacular. And yet the company's valuation is the lowest it has been all year, largely due to the steep market correction experienced thus far in 2025.

Right now, Lucid shares look like a bargain compared to other EV manufacturers. Growth estimates are so high that shares trade at just 4.7 times forward sales. This comes at a time when analysts expect 85.8% sales growth in 2025, with another 86.4% growth expected in 2026. Plus, the company is expected to start production on three new mass market vehicles next year, all of which are expected to be priced under $50,000. These more affordable models should provide yet another growth inflection point for Lucid in 2027 and beyond.

Put simply, Lucid stock is a bargain right now for long-term investors. The valuation is attractive on a historical basis, and yet growth rates are looking very promising over the next few years. But before you jump in, there are several critical risks to be aware of as well.

RIVN PS Ratio data by YCharts

This EV stock has some huge red flags

As the old saying goes: There's no such thing as a free lunch. The same rule applies for Lucid stock right now. Yes, shares are cheap just as the company's sales start to take off. But there are some serious risks to this story.

The departure of Lucid's CEO just as the company's growth hits an inflection point is a worrisome sign, though he had been with the business for over a decade. With only $1.6 billion in cash and cash equivalents, Lucid's liquidity should also be under question. It will take billions of dollars to get these new models to market, and it's not clear that Lucid has the financial firepower to scale according to its timeline.

At minimum, there could be sizable dilution to current shareholders. Plus, there's simply the issue of execution risk. As Tesla and Rivian have proven over the years, it can be difficult to get vehicles to market on time and on budget. Lucid will face the same hurdles as every other EV start-up.

Are shares worth a speculative investment at these levels? If you're looking for maximum growth potential, Lucid Group could be a great addition to a growth-oriented portfolio. But there could also be plenty of volatility as the company attempts to scale in 2025 and beyond. If you're unwilling to stomach strong swings in the stock price, it's likely best to leave Lucid to more risk-tolerant investors.

Should you invest $1,000 in Lucid Group right now?

Before you buy stock in Lucid Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $652,319!*

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*Stock Advisor returns as of April 21, 2025

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Every investor wants to find the next Tesla (NASDAQ: TSLA). Shares have risen more than 20,000% since 2010. A single $5,000 investment would have turned you into a millionaire if you had invested early.

On many metrics, Lucid Group (NASDAQ: LCID) appears to be a worthy successor. There are two reasons in particular that Lucid could mimic Tesla's rise, minting many new millionaires along the way. But there's one catch that every potential investor should also be aware of in order to maximize your potential gains.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

2 reasons this company might be the next Tesla

We must first understand what made Tesla so successful in the first place. Luckily, the company released a "Master Plan" nearly 20 years ago outlining its exact strategy. Written by Elon Musk, it included three simple steps:

1. Build a sports car
2. Use that money to build an affordable car
3. Use that money to build an even more affordable car

In hindsight, Tesla executed this plan flawlessly. It released its powerful yet limited-sales-potential sports car, the Roadster. It reinvested its funds and growing reputation into two luxury models that were a bit more affordable: The Model X and the Model S. Then it used those funds, leveraging its even greater reputation, into two vehicles affordable to the masses: The Model Y and the Model 3.

It's still early, but Lucid is well on its way to replicating this strategy. Currently, it has two high-priced models: The Lucid Air and the Lucid Gravity. These models roughly translate to Tesla's Model X and Model S variants. But just like Tesla, Lucid is planning even more affordable models. Instead of just two models, however, it's planning three -- all expected to debut under $50,000. Production is expected to begin in 2026, but anyone familiar with electric vehicle (EV) production timelines should expect a more conservative launch date, perhaps sometime in early 2027.

There's more to like about Lucid than just its ability to replicate Tesla's growth strategy for vehicle launches. Lucid has also done a great job catching up to Tesla in terms of research and development, at least if you believe management's take on the situation. According to Lucid's former CEO, the company is now "many years ahead" of other EV manufacturers -- Tesla included -- when it comes to next-gen technology investment.

While I'm not totally buying management's take given Tesla's gigantic capital and data advantage, Lucid has clearly put its money where its mouth is, investing more in research and development over the past 12 months than its entire sales base over that period. On a percentage of sales basis, Lucid is reinvesting far more than Tesla at this point, despite its significantly smaller size.

But before you jump in, there's one pitfall every Lucid investor should be aware of, too.

TSLA Revenue (TTM) data by YCharts.

Warning: Don't make this mistake with Lucid stock

Take a look at Tesla's share price over the past two decades, and you'll notice a clear historical pattern: extreme volatility. High growth stocks are often more volatile in general, since the market is constantly rerating how much it's willing to pay for future expected growth. But early stage EV stocks can be even more volatile than the norm.

Many EV manufacturers have gone under this century, and short-term fear can catch on quickly. Plus, the introduction of new models typically takes years and many billions of dollars to be realized. This adds significant execution risk, plus plenty of long stretches in which few major catalysts are realized.

If you're going to take a shot on Lucid Group stock, the key to success will be patience. Anything can happen over the short term. Investors today should be focused on the company's long-term vision of getting its affordable EV models to market. At the minimum, that will take a couple of years. Be wary of jumping in with an investment horizon shorter than that.

Should you invest $1,000 in Lucid Group right now?

Before you buy stock in Lucid Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of April 10, 2025

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Ethereum (CRYPTO: ETH) investors have had a wild ride so far this year. The price of this popular cryptocurrency has dropped by more than 50%. The sudden collapse has even spooked long-term investors.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Should you be panicking or staying the course with Ethereum? As with any volatile investment, it's difficult to tell right now. But I'm keeping my eye on the critical metric below for clues on what might happen next.

This one number can determine Ethereum's future

Many people hold Ethereum for purely speculative reasons. But the cryptocurrency's true underlying value derives from its ability to act as a decentralized computer. Entire applications and third-party infrastructure can be built on top of its network, with no single entity controlling its functioning or performance. And due to its early mover advantage and size, Ethereum remains the go-to network for the rapidly evolving decentralized economy.

How can investors gauge Ethereum's success in this regard? By monitoring the total value locked (TVL) on its network. This metric demonstrates how well Ethereum has done at not only convincing developers to build on top of its network, but also how successful those applications have been at attracting hard-earned capital from consumers, businesses, and other applications.

Ethereum's TVL has grown considerably over the years, from just $600 million at the start of 2020 to nearly $45 billion today. Put simply, Ethereum's decentralized ecosystem is maturing rapidly, especially in emerging categories like DeFi. This TVL has fluctuated wildly in recent years, with a high correlation with the value of Ethereum itself. But the long term trend is clearly headed in the right direction.

In 2021, Ethereum had a market cap high of $560 billion, with a TVL of $107 billion -- roughly 20% of its market cap. Today, Ethereum has a market cap of $180 billion and a TVL of $45 billion -- around 25% of its market cap. So is the price of Ethereum plunging? Yes. But does a rising percentage of TVL to market cap suggest a more mature network? Also yes. Keep an eye on this figure.

Should you invest $1,000 in Ethereum right now?

Before you buy stock in Ethereum, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ethereum wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of April 10, 2025

Ryan Vanzo has positions in Ethereum. The Motley Fool has positions in and recommends Ethereum. The Motley Fool has a disclosure policy.

Dogecoin (CRYPTO: DOGE) is one of the most popular meme coins today with a market cap of $24 billion. And that's after a sharp 50% drop year to date.

Is now the time to load up on Dogecoin? There's one number I track regularly to gauge how attractive Dogecoin is for aggressive long-term investors looking for maximum growth.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

The No. 1 metric to track for Dogecoin

As a meme coin, Dogecoin's price movements can vary wildly on a short-term basis, often with little obvious reason behind its price movements. Its volatility has correlated very closely with other major cryptocurrencies like Ethereum and Bitcoin, with some relationship with traditional equity market swings as well. But when it comes to whether Dogecoin is a good investment for long-term investors, its network transaction volume is a telling metric.

Dogecoin has seen more and more integrations that grant it additional transactional utility both as a peer-to-peer cryptocurrency and a means of trade for a growing ecosystem of decentralized applications (dApps). Network transaction count is a great gauge of success for Dogecoin's ability to become more than just a meme coin with debatable intrinsic value.

April's transaction count has plummeted to multimonth lows. According to CoinMarketCap, Dogecoin's trading volume spiked to $40 billion on November 11, 2024. Five months later, the 24-hour volume is down to $1 billion.

As one of the largest meme coins, Dogecoin's community is arguably its biggest strength. Yet after the sudden price decline, usage of Dogecoin among its community has fallen tremendously.

Dogecoin may still be a great speculative investment for very aggressive growth investors with some extra cash. But with transaction volumes falling more than 97% versus their recent peaks, it's the cryptocurrency still doesn't have much value apart from its meme coin status. Its long-term price trajectory is therefore incredibly difficult to model.

Buying Dogecoin today is like buying a lottery ticket. That's a fine use of extra disposable income, but make sure to set your expectations accordingly.

Should you invest $1,000 in Dogecoin right now?

Before you buy stock in Dogecoin, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dogecoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,779!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $659,306!*

Now, it’s worth noting Stock Advisor’s total average return is 787% — a market-crushing outperformance compared to 152% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of April 10, 2025

Ryan Vanzo has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.