- Nvidia (NVDA) shares are trading near $220.
- At this price, NVDA stock is priced near 2022 lows, down 28% for 2022, and off 2021’s all-time high close by 35%.
- With its Q1 fiscal 2023 earnings a month away, now is the time for investors to buy Nvidia stock.
Among semiconductor stocks, Nvidia (NASDAQ:NVDA) is an elite performer. This is a big, established tech company with a market cap of over $500 billion that has delivered a 740% return over the past five years.
NVDA stock has richly rewarded long-term investors despite a series of very serious challenges. These include the infamous 2018 crypto market crash that flooded the market with surplus graphics cards when crypto miners shut down their rigs. Then there was the pandemic that wreaked havoc with supply chains. Then the chip shortage, which crimped availability of Nvidia’s hot GeForce RTX 30 series graphics cards. The latest hurdle has been the mess of economic issues, including runaway inflation, rising interest rates and fears of recession that have hobbled the stock market in 2022.
At this point, NVDA stock is trading in the $220 range, near its 2022 low. With the company expected to report earnings before the end of May, the window of opportunity to buy Nvidia shares at such a large discount is closing.
Nvidia’s Last Quarter Was Huge
Looking back to February, when Nvidia reported its Q4 fiscal 2022 earnings, it’s hard to make sense of the poor showing of NVDA stock since then. The company reported record quarterly revenue of $7.64 billion, up 53% year-over-year. Nvidia’s Gaming, Data Center, and Professional Visualization divisions all reported record quarterly revenue. Earnings per share of $1.32 were well over analyst expectations and up 69% YoY. Guidance for Q1 2023 revenue was $8.10 billion, plus or minus 2%.
That earnings beat wasn’t an anomaly. The company now has a run of 13 straight quarters of exceeding market expectations for earnings.
Nvidia’s impressive Q4 earnings didn’t kick off a rally for NVDA stock. However, with markets beginning to recover from the worst of the 2022 slump, the company’s Q1 fiscal 2023 earnings could very well prove to be the catalyst investors have been waiting for. With the company expected to deliver those results on May 25, time is running out to make a move.
Nvidia Has a Huge, Long-Term Addressable Market
Nvidia’s business future looks even more impressive than what’s happening now, if that’s possible.
The company’s RTX 2030 series graphics cards have been a runaway success. Constant sellouts of Nvidia cards have become one of the big stories of the past two years. Even if chip shortages weren’t part of the equation, it seems doubtful Nvidia could have kept up with demand. This fall, it’s expected the company will announce RTX 40 series GPUs, fueling another several years of upgrades.
It’s not just graphics cards for gamers and creators that has investors excited about Nvidia. As I wrote several weeks ago, at the company’s GTC 2022 (Graphics Technology Conference), Nvidia unveiled a series of new products, including Hopper chips for AI supercomputers, Grace GPUs for the data center, a new DRIVE Hyperion 9 driving platform and expansion of its Nvidia Omniverse entry into the metaverse market.
All said, Nvidia is looking at a long-term addressable market for its latest product releases in the range of $1 trillion.
Buy NVDA Stock While It’s Still Cheap
Frankly, Nvidia has been a buy all through 2022. At its current price, it’s a no-brainer. This is a company that can anchor your long-term growth portfolio. Remember, NVDA stock has delivered a return of over 740% over the past five years — despite being caught up in the broad market slump that has hit tech stocks. If you take the past few months out of the equation, NVDA’s five-year return is well over 1,200%.
With its business firing on all cylinders and a huge addressable market for growing businesses like automotive, data centers and the metaverse, NVDA stock continues to have long-term growth written all over it. That’s why Nvidia stock rates an “A” rating in Portfolio Grader. It’s also a consensus “buy” among the investment analysts polled by the Wall Street Journal. Their average price target of $332.20 offers a juicy 55% upside.
NVDA stock is near 2022 lows, but don’t expect it to remain this way for long. With the company’s Q1 fiscal 2023 earnings (and high odds of another EPS beat) expected in a little over a month, the clock is ticking on this opportunity to scoop up NVDA stock on the cheap.
On the date of publication, Louis Navellier had a long position in NVDA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.