That sort of growth is nothing short of eye-catching, and the large investment held by insiders should certainly brighten the view of the company. NVIDIA's earnings have taken off in quite an impressive fashion. Holders should find this level of insider commitment quite encouraging, since it would ensure that the leaders of the company would also experience their success, or failure, with the stock. We note that their impressive stake in the company is worth US$11b. But we do take comfort from the fact that they are investors in the company. We would not expect to see insiders owning a large percentage of a US$279b company like NVIDIA. Story continues Are NVIDIA Insiders Aligned With All Shareholders? While that sort of growth rate isn't sustainable for long, it certainly catches the eye of prospective investors. Recognition must be given to the that NVIDIA has grown EPS by 41% per year, over the last three years. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. View our latest analysis for NVIDIA How Fast Is NVIDIA Growing? While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. In contrast to all that, many investors prefer to focus on companies like NVIDIA ( NASDAQ:NVDA), which has not only revenues, but also profits. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit.
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