Nvidia (NASDAQ: NVDA) stock has surged significantly in recent years, with an impressive gain of over 185% this year alone. This remarkable performance is driven by the company’s dominant position in the rapidly expanding artificial intelligence (AI) market. Nvidia has become a key player, with its chips being essential for AI development, a market expected to be worth $1 trillion by the decade’s end.
However, Nvidia’s success doesn’t stop with chips. The company has strategically built a robust portfolio of AI products and services, including networking solutions and enterprise software. As a result, Nvidia has become the go-to supplier for AI, counting many of the world’s leading tech companies as customers. This has led to triple-digit growth in Nvidia’s data center revenue, with impressive profitability and a gross margin exceeding 70%.
With AI continuing to grow, Nvidia is poised for long-term success. But if you haven’t yet invested, you may be wondering if it’s the right time to get in. With an upcoming potential catalyst on December 3, the question arises: Should you buy Nvidia before then?
Nvidia’s Dominance in the AI Market
Nvidia’s chips, especially its graphics processing units (GPUs), currently dominate the AI market with an 80% market share. These GPUs are incredibly powerful, capable of processing multiple tasks simultaneously. Nvidia is committed to updating its GPUs annually, a move that solidifies its leadership in AI hardware. The demand for these advanced chips has skyrocketed, with major tech players like Oracle and Tesla urging Nvidia to supply more.
The growing demand is also due to Nvidia’s GPUs being the fastest on the market, making them essential for companies working on groundbreaking AI platforms or products. As AI companies rush to build competitive platforms, Nvidia’s chips remain the best option to power their operations.
The Impact of Blackwell
Nvidia is set to release its Blackwell GPU architecture soon. While the company has already sent out 13,000 sample chips, the full production ramp is expected to occur in the current quarter. Given that Nvidia recently reported strong earnings, it’s unlikely that any major announcements will come from the company at the UBS Global Technology and AI Conference on December 3. However, there may be new details about Blackwell’s success and demand, which could lead to positive stock movements.
Should You Buy Before December 3?
If you’re considering a short-term investment, buying Nvidia before December 3 might offer an opportunity for a quick gain, especially if the company provides positive updates on Blackwell’s demand. However, for long-term investors, the impact of this specific event is minimal in the grand scheme of Nvidia’s future growth. Whether you buy before or after the conference, Nvidia remains a strong long-term investment, with significant upside potential driven by its position at the forefront of the AI revolution.
A Lucrative Opportunity Awaits
If you feel like you missed out on some of the most successful stocks in recent years, now may be the perfect time to jump in. Nvidia has proven itself as a long-term winner in the AI space, and opportunities like this don’t come around often.
In fact, previous “Double Down” stock recommendations have yielded impressive returns:
Nvidia: A $1,000 investment in 2009 would have turned into $368,053!
Apple: A $1,000 investment in 2008 would have grown to $43,533!
Netflix: A $1,000 investment in 2004 would have been worth $484,170!
Right now, our analysts are issuing new “Double Down” recommendations, and it might be your last chance to capitalize on this kind of potential. Don’t miss out—see the latest stock picks today.
Stock Advisor returns as of November 25, 2024
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