nvidia (NVDA) 3.97%)) Stocks have risen 1,800% over the past five years, making it a solid long-term investment. This is thanks to the company’s dominance in artificial intelligence (AI), one of today’s highest growth areas. From around $200 billion today, the market is projected to exceed $1 trillion by the end of the decade.
And Nvidia has already earned rewards for its leadership. The company reported quarters after double- and triple-digit revenue growth quarters, with momentum continuing in recent periods. NVIDIA has raised its quarterly and full-year revenue to record levels. That amounts to $39 billion a quarter and $130 billion a year. The better news is that huge amounts of growth could go ahead as the company is set to profit from the next stage of AI growth, including ongoing AI infrastructure buildouts and applications to expand technology to real issues.
So, you probably won’t be surprised when I say that I’m a great stock owned by Nvidia. But do you need to get into this player exactly? You can move quickly or wait until March 18th, a day that could represent a large catalyst in stock.
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Why Nvidia is a portfolio spot?
First, let’s take a look at why Nvidia can make a big addition to its portfolio. Nvidia has a solid record of revenue and this growth must continue thanks to the company’s leadership and innovation in AI. Nvidia has created the world’s fastest AI chip (known as Graphic Processing Units (GPUs)) and sells a wide range of other related products and services. Essentially, new or seasoned AI customers can find everything they need on Nvidia.
Innovation is a particularly important point as it is a factor that could keep Nvidia ahead of its rivals in this fast-paced market. Nvidia’s recent revenue call talked about the successful developments of the new Blackwell Architecture. This is the product that brought $11 billion in its first quarter on the market. And Nvidia said Blackwell Ultra is set to be released later in the year and that maintaining the promise of innovation is going well every year as Rubin Architecture continues.
All this means that Nvidia is well suited to profit from the ongoing AI infrastructure buildout and the next stage of AI growth. And this makes stocks an easy purchase for investors looking to bet on the AI revolution. However, some investors may think it’s wise to wait a few weeks.
Blackwell, Rubin, etc.
On March 18th, CEO Jensen Huang will provide keynote speech at the company’s annual GTC AI conference, allowing us to learn more about Nvidia’s role in AI development.
“Come to GTC. I’ll talk about Blackwell Ultra and Bella Rubin, then I’ll show you what happens afterwards,” fans said in Nvidia’s revenue call this week.
The GTC will be unfolded over five days, and is a day of exhibitions, panels and even quantum computing. This is the first time I’ve had at an event. Huang’s keynote speech will be scheduled for March 18th from 10am to noon.
Recent history shows that Nvidia’s stocks have not necessarily skyrocketed in the weeks following the earnings report. For example, the stock fell the following month on the last two earnings reports. If Nvidia stagnates or falls over the next few days, you can buy stocks just in front of GTC or at a lower price than if you were rushing in to hurry in. Of course, history is not always right. This means that Nvidia could soar in the next few days. This means that if you wait, you can pay more for inventory.
Remove pressure and concentrate over the long term
So, what is your best decision? It is important to remove pressure from yourself and remember that holding stocks over the long term does not affect your overall performance. Previously, I mentioned Nvidia’s four-digit increase over the past five years. Over the weeks that followed, they would not have changed much investor returns at the end of the period.
All this means that whether you’re buying Nvidia stock today, whether you’re buying shares in Nvidia today, whether just before Huang’s keynote on March 18th, or just after the meeting, doesn’t really matter. In the long run, the same results may be seen. In this case, the outcome can be very positive. That said, Nvidia looks particularly cheap when writing this, trading with a positive earnings estimate of around 29 times, so if you have investable cash, it’s the perfect moment to join this top AI stock.
Adria Cimino has no position in any of the stocks mentioned. Motley Fool has a job at Nvidia and recommends. Motley Fools have a disclosure policy.
