Nvidia Stock Is a Bona Fide Buy Before the Next Blastoff


  • Investors are currently assessing Nvidia (NVDA), as the AI chip stock zig-zags between $850 and $950 per share.
  • Shares may be soon set to experience their next big rally, perhaps making now an opportune time to buy.
  • The long-term bull case for Nvidia stock continues to strengthen, providing even more reason to pounce at current price levels.
Nvidia stock - Nvidia Stock Is a Bona Fide Buy Before the Next Blastoff

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Nvidia (NASDAQ:NVDA) stock may just well continue to zig-zag between $850 and $950 per share. However, while it may not make its move tomorrow, or next week, the coming weeks are another matter. A spate of promising updates could help propel NVDA to over $1000 per share for the first time.

That’s not all. Rather than weakening, the long-term bull case for Nvidia continues to strengthen. As I’ll explain below, both these factors point to now being an opportune time to enter a position.

Nvidia Stock: Primed to Rally Ahead of Earnings?

Nvidia’s release date for its results during the quarter ending Jan. 31 has yet to be set, but based on the dates of prior earnings releases, it is likely to happen some time in late May. Previously, we have discussed why the company is likely to report strong results in this upcoming earnings release.

Mostly, because the big tech giants, in their quest to dominate the AI software space, continue to buy Nvidia’s AI-compatible chips hand-over-fist. However, don’t assume this means Nvidia stock will only rally post-earnings.

As Barrons’ Adam Clark argued on April 12, earnings releases from Nvidia’s big tech customers could provide an indication of whether AI chip demand remains strong, or if there is validity to concerns about a slowdown in AI chip purchases.

Many of these key customers next report earnings later this month. Nvidia’s next major rally could be just a few weeks away. That said, don’t get me wrong. Yes, there may be the opportunity to enter a profitable pre-earnings swing trade with this stock.

However, the real opportunity with NVDA has, and continues to be, long-term in nature.

A Clear Path to Stay at the Top

Forget about Nvidia stock merely hitting $1000 per share, followed up by a slower pace of price appreciation. More big leaps to loftier price levels remain within the realm of possibility for NVDA in the next year or two.

It all has to do with the stock’s continuously-strengthening long-term bull case.

Yes, there’s much out there suggesting there is rising uncertainty about Nvidia. Primarily, regarding future AI chip demand trends, as well as rising competition. Just as near-term fears of an AI chip demand slowdown are shortsighted, the same could be said about long-term demand slowdown fears.

Big tech’s buildout of its AI infrastructure may be the key demand driver now, but new user markets are emerging. Examples include AI-PC chips, plus emerging non-tech end-user markets like automotive and government. Investors today are likely overreacting to the threat of competition as well.

As BofA analyst Vivek Arya argues, Nvidia remains well-positioned to keep dominating the AI chip market. Even a few years down the road, when the annual size of this market goes from $90 billion to $200 billion, this AI early mover could have 75% market share.

The Verdict: Still a Strong Buy, for the Near and Long-Term

Again, positive developments for Nvidia are on the horizon. These could drive the next near-term liftoff for NVDA. In the quarters ahead, positive factors like the rollout of Nvidia’s Blackwell line of AI chips could enable the company to keep on beating expectations.

This would undoubtedly keep the stock on an upward trajectory. Over a multi-year time frame, where Nvidia stays at the top of the AI chip heap, continuing to deliver forecast-beating numbers, a move to $1500 per share is well within reach.

The top end of forecasts call for NVDA to report earnings of $46.37 per share in the coming fiscal year January 2026. Even if shares experience some multiple compression, this could justify a move to the $1500 per share mark.

Still a strong buy, for the near and long-term, it’s time to pounce on Nvidia stock.

Nvidia stock earns an A rating in Portfolio Grader.

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.

The 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.

Article printed from InvestorPlace Media, https://investorplace.com/market360/2024/04/nvidia-stock-is-a-bona-fide-buy-before-the-next-blastoff/.

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