This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The name James Anderson might not ring any bells with U.S. investors, but his track record and investing acumen are well documented. The legendary investor was a rock star at Scottish investment management firm Baillie Gifford for more than 40 years. He was in charge of the premier Scottish Mortgage Investment Trust for over two decades, generating returns of more than 1,700% during his term. 

Anderson secured his legacy early on, recognizing the dramatic growth potential of then early stage companies, including Netflix, Amazon, Tesla, and Nvidia (NASDAQ: NVDA), delivering considerable profits for investors along the way. Given his track record, when Anderson talks, investors should listen.

Most experts agree that the adoption of artificial intelligence (AI) is still in its early stages, and if the trend continues, Nvidia's market cap could surge to as much as $50 trillion by 2035, according to Anderson. While that might seem improbable on its face, Anderson's reasoning is worth a look. 

Dominating the space

The dawn of generative AI in early 2023 created a windfall for Nvidia. The company pioneered the graphics processing units (GPUs) that quickly became the gold standard for AI. Nvidia rode the unprecedented demand for its chips to become the world's largest publicly traded company, valued at $4.58 trillion (as of this writing).

After two successive years of triple-digit year-over-year sales growth, Nvidia's results have begun to moderate but are still enviable by any standard. In its fiscal 2026 second quarter (ended July 27), Nvidia generated revenue that grew 56% year over year to a record $46.7 billion, while diluted earnings per share (EPS) of $1.08 jumped 61%.

Yet this could be just the beginning. The AI market is projected to be worth as much as $15.7 trillion by 2030, according to data compiled by "Big Four" accounting firm PricewaterhouseCoopers (PwC). The report suggests "AI is still at a very early stage." If Nvidia earns just a small slice of that total opportunity, sales and profits could continue to surge, resulting in a windfall for the chipmaker and its shareholders.

Anderson estimates the data center market, where most AI processing is conducted, is poised to grow 60% annually. If Nvidia's profit margin holds steady and the adoption of AI continues at its current pace over the next 10 years, Anderson estimates that Nvidia would deliver EPS of $1,350 and free cash flow of $1,000 per share. That would drive the stock price to about $20,000, pushing its market cap to roughly $49 trillion.

Despite increasing competition, Nvidia currently dominates the data center GPU space, commanding 92% of the market, according to IoT Analytics. Anderson points out that the company's "persistent exponential progress, the competitive advantages in hardware and software, and the culture and leadership are exactly what we look for."

The fine print

Make no mistake, plenty of things will have to go right for Nvidia to reach this astonishing benchmark, and there will be a lot of obstacles along the way. Demand for AI could falter, a rival chipmaker could "invent a better mousetrap," so to speak, or the economy could go south -- and these are just a few examples of the challenges that could arise.

Even Anderson admits that this "isn't a prediction but a possibility if artificial intelligence works for customers and Nvidia's lead is intact." When asked about the potential for the stock to reach these meteoric heights, Anderson puts the odds at between 10% and 15%.

However, investors shouldn't miss the forest for the trees. "It is the long duration of the development of [GPU] usage in AI -- and not just AI -- from excitement, through potential pauses, to transformation of industries that is most important to us," Anderson said.

There's also the matter of Nvidia's valuation. The stock has a price-to-earnings (P/E) ratio of roughly 54, compared to a multiple of 31 for the S&P 500. However, at less than 30 times next year's expected earnings, I'd submit it's an attractive price to pay, particularly given the magnitude of the opportunity.

Even if Nvidia doesn't hit a $50 trillion market cap over the next 10 years, all the available evidence suggests Anderson's thesis is directionally accurate. Furthermore, CEO Jensen Huang has proven particularly adept at identifying opportunities before they materialize and positioning Nvidia for future success. Given his track record, I wouldn't bet against him.

That's why I believe Nvidia stock is still a buy. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena has positions in Amazon, Netflix, Nvidia, and Tesla. The Motley Fool Australia’s parent company, Motley Fool Holdings Inc., has positions in and has recommended Amazon, Netflix, Nvidia, and Tesla. The Motley Fool Australia has recommended Amazon, Netflix, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Key Points

• Nvidia is the flag bearer for generative AI, which is still in the early innings.

• The chipmaker furnishes the graphics processing units (GPUs) that supply the computational horsepower that underpins AI.

• While Nvidia has grown at a blistering pace over the past few years, it likely has further to run, and it's still attractively priced.

Artificial intelligence (AI) has stolen the limelight over the past few years, and there's plenty of evidence to suggest this is just the beginning. Developers continue to create new applications for the technology, which is being leveraged to produce original content, streamline business processes, and enhance productivity. Despite making headlines for more than two years, it's still early days for the adoption of AI, and the evidence suggests spending continues to ramp up.

In fact, the four horsemen of technology -- namely Microsoft, Alphabet, Amazon, and Meta Platforms -- are poised to collectively spend more than $400 billion for the capital expenditures required to support their AI ambitions this year, and these outlays show no signs of slowing.

With data center spending at the top of the shopping list, Nvidia (NASDAQ: NVDA) is positioned to reap the rewards of much of that spending. The company pioneered the graphics processing units (GPUs) that perform the mathematical calculations required to enable AI, and I predict it will parlay the unrelenting demand for those chips into charter membership in the $6 trillion club.

A GPU primer

Nvidia pioneered the first GPU back in 1999 to render lifelike images in video games. The groundbreaking development that made that possible was parallel processing, which breaks up massive computing jobs into smaller, more manageable chunks. This enabled the simultaneous processing of a multitude of mathematical computations, making Nvidia's chips a game-changer.

This was just the beginning of the journey for the humble GPU, which proved adept at enabling or accelerating other applications, including those in the cloud or data centers, where the majority of AI processing takes place. Nvidia has become the gold standard for data center GPUs, controlling an eye-watering 92% of the market, according to business intelligence firm IoT Analytics.

The feverish demand for these specialty chips has driven Nvidia's financial results and its stock price into the stratosphere.

Show me the money

In its fiscal 2026 first quarter (ended April 27), Nvidia generated record revenue of $44 billion, which surged 69% year over year and 12% sequentially. This fueled adjusted earnings per share (EPS) that jumped 27% to $0.76. The headliner was the data center business, which includes processors used for cloud computing, data centers, and AI. Revenue for the segment surged 73% to $39 billion, driven by relentless demand for AI.

This could be just the beginning. Big Four accounting firm PricewaterhouseCoopers (PwC) estimates the AI market could be worth $15.7 trillion by 2030, with Nvidia being a major beneficiary by supplying the cutting-edge chips that underpin the technology.

The path to $6 trillion

Nvidia currently boasts the world's highest market cap for a publicly traded company, at roughly $4.44 trillion (as of this writing). This means its stock price would need to rise 35% to drive its value to $6 trillion. According to Wall Street, Nvidia is poised to generate revenue of more than $201 billion in fiscal 2026 (which began in January), giving it a forward price-to-sales (P/S) ratio of roughly 22. Assuming its P/S remains constant, Nvidia would need to increase its revenue to roughly $272 billion annually to support a $6 trillion market cap.

Wall Street forecasts estimate that Nvidia will grow its revenue by 53% this year and 25% next year. If the company can attain those benchmarks, it could reach a $6 trillion market cap as early as 2027.

But don't take my word for it. Loop Capital analyst Ananda Baruah has just issued a Street-high price target of $250 on Nvidia stock, suggesting it could reach a market cap of $6.1 trillion over the next 12 to 18 months. The analyst cited supply chain checks and concluded that hyperscale adoption of generative AI and AI factories could generate spending of $2 trillion by 2028, with Nvidia as a major beneficiary. Given the widespread adoption of AI, I believe Baruah's call is prescient.

It's important to remember that these gains won't come in a straight line. A review of Nvidia's charts reveals that the stock price has fallen 25% or more from its peak on at least five separate occasions, and in one case, it plunged 66%.

On the other hand, it would be difficult to overstate the company's success. Despite the aforementioned volatility, over the past decade, Nvidia's revenue has grown by 3,735%, while its net income has surged 13,911%. Furthermore, the company's relentless innovation and improving financial performance have fueled a blistering increase in its stock price, which has soared 30,870%.

Nvidia is currently selling for 31 times next year's earnings, which is certainly a premium. However, given its impressive track record, consistent execution, and the significant opportunity represented by AI, I'd argue it's a small price to pay for such a high-quality company.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Prediction: This unstoppable stock will be a founding member of the $6 trillion club by 2027 appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena has positions in Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

There's no two ways about it. Investors across the depth and breadth of Wall Street are absolutely captivated by Nvidia (NASDAQ: NVDA). The chipmaker is a frequent topic of discussion among financial programming anchors and analysts alike. There's more. Of the 66 analysts who offered an opinion in July, 88% say it's a buy or strong buy, and none recommend selling.

There are plenty of reasons Wall Street is obsessed. Let's look at a few of those reasons and what they mean for investors.

Paint by numbers

Nvidia was already one of the world's most successful chip companies, a leading provider of graphics processing units (GPUs) that bring video games to life. Furthermore, Nvidia developed CUDA, a library of software tools that helps developers harness the raw, number-crunching power of GPUs for computationally intensive applications. This enabled data scientists and researchers to develop speedier algorithms, spurring the artificial intelligence (AI) revolution.

That pivot to AI has led to eye-popping financial gains. For two successive years, Nvidia generated triple-digit year-over-year revenue and profit growth. At the same time, the stock price surged 638%, adding $3 trillion to its market cap. Since then, its growth has slowed but remains impressive nonetheless. In the company's fiscal 2026 first quarter (ended April 27), revenue of $44 billion jumped 69% year over year, while adjusted earnings per share (EPS) climbed 33%.

Great news for investors

As impressive as these results are, Nvidia's growth story is far from over, which is great news for investors. Sales of Nvidia's next-generation Blackwell AI-centric chips have recently started to ramp up, and CEO Jensen Huang is lobbying world leaders to develop their own sovereign AI programs. Furthermore, the chief executive's efforts in Washington, D.C., appear to be paying off, as the Trump administration is poised to approve the resumption of H20 chip sales to China, according to Huang.

Wedbush analyst Dan Ives says it's "still the first inning for AI," which suggests there's much more opportunity ahead.

That's why Wall Street is obsessed with Nvidia, and investors should be, too.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why is Wall Street obsessed with AI (artificial intelligence) leader Nvidia? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena has positions in Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

When it comes to streaming video services, Netflix (NASDAQ: NFLX) requires little introduction. From its humble beginnings mailing DVDs to customers using its signature bright red envelopes, the company has become ubiquitous as the world's largest subscription-based streaming service.

Much to the delight of its shareholders, Netflix continues to find new ways to juice its revenue growth and resulting profits, even as it transitions to a more mature company. This innate ability has fueled its stock price, which has surged 614% over the past three years and 91% over the past 12 months.

The company faces a key hurdle when Netflix reports its second-quarter results after market close on July 17. Given the stock's blistering run over the past year, should investors lay out their hard-earned money to get in on the action or wait until after this important financial report? Let's dig in to see what the evidence suggests.

Will the hits keep coming?

One of the defining characteristics of Netflix has been management's uncanny ability to find new avenues for growth. In the wake of the pandemic and despite heavy market penetration, Netflix struck gold and reignited its growth with the release of its ad-supported tier in late 2022.

Similarly, the company defied detractors with a crackdown on password sharing. By offering users the opportunity to "share" their Netflix account with members outside their household for a nominal fee, the company struck a delicate balance between increasing revenue and alienating viewers.

This two-pronged strategy has yielded impressive results. In the first quarter, Netflix generated revenue of $10.5 billion, an increase of 13% year over year, resulting in earnings per share (EPS) of $6.61, which jumped 25%. Management credited higher subscription and ad revenue for fueling the results.

Netflix expects its growth streak to accelerate. For the second quarter, the company is guiding for revenue of $11.04 billion and EPS of $7.03, which would represent year-over-year growth of 15% and 44%, respectively. Wall Street is firmly onboard, as analysts' consensus estimates are calling for revenue of $11.04 billion and EPS of $7.06.

Opportunities abound

This isn't simply a pipe dream, either, as evidence suggests the company's "standard with ads" tier is driving robust growth. Earlier this year, Netflix revealed that monthly active users on its ad-supported tier soared to 94 million, representing 135% growth over the past year. The company also noted that the ad-supported tier attracted 55% of new subscribers in the countries where it's available.

Perhaps more importantly, the streaming giant said it reaches more 18-to-34-year-olds than any other U.S. broadcast or cable network. Furthermore, those viewers are highly engaged, watching an average of 41 hours of Netflix programming each month. This gives the company an increasing amount of leverage with advertisers and a massive opportunity in terms of future ad revenue.

Netflix has a strong slate of programming lined up for the second half of 2025. The company is releasing the latest additions to some of its biggest hits, including Stranger Things, Wednesday, The Sandman, Old Guard 2, and The Witcher. Of special note is Squid Game 3, which was released just last week and shattered the record, with 60.1 million views in the first three days of its release.

It's also worth noting that Netflix just forged a partnership with French broadcaster TF1, which will allow viewers to watch TF1 channels, live sports, and on-demand content directly on Netflix. This first-of-its-kind partnership could provide a template for the future of streaming.

Should you buy Netflix stock now, or wait until after earnings?

For investors wanting to capitalize on the ongoing demand for streaming, the future looks ripe with opportunity for the streaming video pioneer. This begs the question: Is it better to buy Netflix stock now, or wait until after the company reports earnings?

Those with a long-term investing outlook would be best served by simply buying the stock and resisting the temptation to time the daily machinations of the stock market. To be clear, there's simply no way to know what the quarterly results will actually be or how investors will react on a given day. As such, there's no way to know whether the stock will rise or fall following the company's financial report.

The underlying, and perhaps more important question, is whether Netflix stock is a buy -- and the evidence suggests there are plenty of reasons to be optimistic. Wall Street is also bullish, as 33 of the 50 analysts who offered an opinion in June rate the stock a buy or strong buy, and none recommended selling.

Management is equally optimistic. The company has an internal goal of doubling its revenue and tripling its ad revenue by 2030, according to a report in The Wall Street Journal. This would put Netflix in rarified company, nearly doubling its market cap to roughly $1 trillion. For context, there are currently only 11 companies with valuations that exceed that yardstick.

I'd be remiss if I didn't mention the stock's valuation, as Netflix is currently selling for 42 times next year's expected earnings. While that might seem steep, I'd suggest it's a fair price to pay for profit and revenue growth of this caliber.

Given the company's track record of success, robust growth, the vast opportunity ahead, and its strong slate of programming, the evidence suggests Netflix stock is a buy.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should you buy Netflix stock before July 17? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena has positions in Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

There's no denying that the emergence of generative artificial intelligence (AI) was the spark that lifted Nvidia (NASDAQ: NVDA) stock to new heights. In recent months, however, the future has been less certain. Concerns about how AI models will evolve and whether they will need the latest and greatest chips sent some investors to the sidelines. In fact, earlier this year, Nvidia stock plunged 37% on fears the company's best days were behind it.

It turns out the sky isn't falling after all. Nvidia has delivered two successive quarters of high-double-digit revenue growth, as demand for AI remains robust. Indeed, the stock is within striking distance of a new all-time high after notching gains of 50% over the past two months.

Let's take a step back and review the opportunity, Nvidia's place in the AI ecosystem, and whether it's too late to buy the stock.

Nvidia is still the gold standard

Nvidia's original claim to fame is developing the graphics processing units (GPUs) that generate lifelike images in video games. However, it was the adapting of that technology to train and run AI systems that catapulted the chipmaker to new heights. The popular narrative is that its rivals are on the verge of a better solution, but thus far anyway, none has been forthcoming.

The company established a beachhead in AI as early as 2013, giving Nvidia more than a decade-long head start on the competition. After developing processors focused on machine learning -- an earlier branch of AI -- Nvidia quickly became the gold standard, controlling as much as 95% of the market, according to CB Insights (via BBC News). That existing expertise gave Nvidia the advantage in the data center GPU space, where it currently controls an estimated 92% of the market, according to IoT Analytics.

The buildout of data centers to meet the growing demand of AI continues, which bodes well for Nvidia.

Nvidia's growth is (still) off the charts

While Nvidia's growth has inevitably slowed from the triple-digit pace it managed last year, it still runs circles around the competition. For its fiscal 2026 first quarter (ended April 27), the company generated record revenue of $44.1 billion, which surged 69% year over year. Adjusted earnings per share (EPS) of $0.81 climbed 33% -- but that was after a $4.5 billion hit related to export controls for H20 chips originally destined for China. If not for that one-time charge, EPS would have grown 57%.

Management expects the company's robust growth to continue. For its fiscal 2026 second quarter, Nvidia is guiding for record revenue of $45 billion, which would represent growth of 50%. This helps illustrate that despite tough triple-digit comps, Nvidia continues to grow at a remarkable pace.

Is Nvidia stock too expensive?

The stock's rebound over the past few months has come with a commensurate increase in its valuation, which begs the question: Has Nvidia stock gotten too expensive?

Investors might be surprised to learn that simply isn't the case. Nvidia stock is selling for roughly 33 times forward earnings (as of this writing), which is an attractive valuation for a company that's expected to grow its profits by 50% in the coming quarter.

Furthermore, when measured using the price/earnings-to-growth ratio (PEG ratio), Nvidia has a multiple of 0.56, when any number less than 1 is the standard for an undervalued stock.

It's still early innings

Despite the rapid run over the past two years, it's important to remember it's still early days for the adoption of generative AI. These groundbreaking systems have only been around for a little more than two years, and many believe the adoption cycle will continue for much of the next decade.

Estimates vary wildly regarding the potential size of the AI market but they can still give context regarding the size of the opportunity. The generative AI market could be worth between $2.6 trillion and $4.4 trillion annually in the coming years, according to global management consulting firm McKinsey & Company.

Given Nvidia's market-leading position, deeply entrenched technology, the magnitude of the opportunity, and its attractive valuation, I would argue it isn't too late to buy Nvidia stock. These aren't empty words: I added to my Nvidia position as recently as April.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena has positions in Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

To say that investors were on the edge of their seats ahead of Nvidia's (NASDAQ: NVDA) highly anticipated financial report may well be an understatement. As the poster child for the artificial intelligence (AI) revolution, the company has become the benchmark for the tech industry at large and the yardstick by which progress in AI is being measured.

While the chipmaker delivered better-than-anticipated results on both the top and bottom lines, there were a few blemishes in what would have been an otherwise spotless report.

Let's take a look at what the results reveal, and if they give us any insight into the future of AI.

Paint by numbers

Investors had high hopes ahead of Nvidia's fiscal 2026 first quarter (ended April 27), and the AI chipmaker delivered. The company generated record revenue of $44.1 billion, up 69% year over year and 12% quarter over quarter. This drove adjusted earnings per share (EPS) of $0.81, which climbed 33%.

For context, analysts' consensus estimates were calling for revenue of $43.25 billion and EPS of $0.75, so Nvidia sailed past expectations with some wiggle room.

Fueling the bullish results was a record-setting performance from the data center segment, which continues to drive growth. The segment -- which includes processors used for data centers, AI, and cloud computing -- generated revenue that surged 73% year over year to $39.1 billion, driven by continuing demand for AI.

One item of note was the Trump administration's tightening export restrictions. Nvidia's H20 processor was originally designed to meet the already rigid requirements for AI chips destined for China. However, demand evaporated thanks to the new, more stringent licensing requirements, causing Nvidia to take a $4.5 billion charge in Q1 -- though that was lower than the $5.5 billion estimate the company provided last month.

The impact of the move trickled its way down the financial statements. For example, if not for the write-off, Nvidia's adjusted EPS would have clocked in at $0.96, resulting in a hit of about $0.15 per share.

However, as revenue jumped 69%, operating expenses climbed just 44%, sending more to the bottom line and helping blunt the impact of the lost sales to China. Nvidia's cash stockpile has grown over the past year, with cash and marketable securities of $53.7 billion, an increase of 71%. Free cash flow of $26.1 billion soared 75%.

CEO Jensen Huang provided commentary about the future of the AI revolution, and the rock star chief executive didn't mince words:

Global demand for Nvidia's AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure -- just like electricity and the internet -- and Nvidia stands at the center of this profound transformation.

This pronouncement, combined with the company's robust business performance, helped drive Nvidia stock higher in after-hours trading, with shares up more than 4% (as of this writing).

The tariffs wild card

Management expects the company's growth spurt to continue. Nvidia is guiding for record second-quarter revenue of $45 billion, which would represent year-over-year growth of 50%. This was largely in line with Wall Street's consensus estimates, but the devil is in the details. The number includes a loss of approximately $8 billion in its fiscal Q2 revenue from the H20 chips, thanks to the more stringent export requirements.

Despite the hit to its growth, investors remain bullish on Nvidia stock. Shares are currently selling for roughly 32 times next year's expected earnings. While that's a modest premium, it's still an attractive price to pay for a company expected to grow its profits by 39% this fiscal year and 35% in its fiscal 2026 -- even after the hit to China sales.

Nvidia CFO Colette Kress revealed, "Large cloud service providers remained our largest [customers] at just under 50% of data center revenue." A quick calculation reveals that 44% of Nvidia's total revenue is currently dependent on the world's largest cloud infrastructure providers, including Amazon Web Services, Microsoft's Azure Cloud, and Alphabet's Google Cloud. Honorable mention goes to Meta Platforms, which has also significantly scaled up capital expenditures (capex) to build out its data centers.

As evidenced by Nvidia's results, the data center build-out continues, and the world's largest tech companies and cloud providers have telegraphed their intention to continue the heavy spending that has characterized the build-out of AI infrastructure. Nvidia continues to dominate the data center GPU market, with more than 90% of the market.

For long-term investors, this quarter is one data point in a long track record of impressive execution. Nvidia remains at the heart of the AI revolution, which illustrates that the stock likely has much higher to go from here. It continues to be one of my highest-conviction stocks.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Danny Vena has positions in Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

If investors had to choose just one company that exemplifies both the opportunities and risks associated with recent advances in artificial intelligence (AI), Nvidia (NASDAQ: NVDA) would be a logical choice. The company's graphics processing units (GPUs) have been the linchpin that powered the AI revolution and fueled Nvidia's atmospheric rise, as the stock gained more than 800% in just two years. However, it has since suffered a stark reversal of fortune, plunging 36% (as of this writing) and shedding more than $1.3 trillion from its market cap since earlier this year.

After a slump of this magnitude, is it finally time to buy the stock?

Greedy when others are fearful

Several factors have contributed to Nvidia's downfall in recent months. China's DeepSeek, a high-performance AI model, was created without the benefit of Nvidia's state-of-the-art GPUs. This marked the beginning of the stock's current slump, but it didn't stop there.

Last week, the Trump administration restricted the sale of Nvidia's H20 chips, which were developed specifically to meet the already stringent rules for exporting AI chips to China. This move caused Nvidia to take a $5.5 billion write-off. Some analysts believe this move was made to gain leverage in the ongoing trade war with China, but the move could backfire. Several reports suggest that Chinese chipmakers are boosting production of AI chips in response to the export ban.

However, the situation isn't nearly as dire as it might seem at first glance. Estimates suggest Nvidia's sales to China were roughly $17 billion or about 13% of its total sales for the fiscal year that ended in January. However, accelerating demand for cutting-edge AI processors will likely help Nvidia make up for any sales lost as a result of the export restrictions.

If you have doubts, consider this: Big Four accounting firm PwC estimates that AI could contribute as much as $15.7 trillion to the global economy by 2030. If Nvidia captures just a small portion of that opportunity, the loss of its sales to China will seem like a drop in the bucket. Furthermore, at just 21 times forward earnings, Nvidia stock is a relative bargain for long-term investors. While the stock could still have further to fall, I predict it will be much higher five years from now.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena has positions in Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

If there's one company that has been at the epicenter of the artificial intelligence (AI) revolution, Nvidia (NASDAQ: NVDA) is it. The company's graphics processing units (GPUs) provide the computational horsepower that underpins the vast majority of AI processing and has been the biggest contributor to the accelerating adoption of this groundbreaking technology.

Being the poster child for AI can be a double-edged sword, however. In late January, reports suggested that Chinese start-up DeepSeek had developed a cutting-edge AI model with older-generation GPUs and for a much lower cost. Some Nvidia investors saw this as a harbinger of doom for the company, fearing that demand for its processors could come to a screeching halt.

The chipmaker delivered its financial report after the market close on Wednesday and the blockbuster results, combined with commentary from management, have largely put those fears to rest.

Let's take a look at the results, what it reveals about the future, and what CEO Jensen Huang said that every shareholder needs to hear.

By the numbers

Despite the misgivings, expectations were high heading into Nvidia's fiscal 2025 fourth quarter (ended Jan. 26), and the company delivered. Nvidia generated record revenue of $39.3 billion, up 78% year over year and 12% sequentially. This fueled adjusted earnings per share (EPS) of $0.89, which surged 71%.

For context, analysts' consensus estimates were calling for revenue of $38.16 billion and EPS of $0.85, so Nvidia cleared both hurdles with ease.

Driving the robust results was record data center demand, which continues to fuel its growth. Revenue from the segment -- which includes chips used for data centers, cloud computing, and AI -- soared 93% year over year to $35.6 billion, thanks to relentless demand for AI.

If there was one issue that was of potential concern to investors, it was likely the somewhat gradual decline in Nvidia's gross margin, which has persisted for several quarters. Gross margin edged lower to 73% in Q4, down from 76% in the prior-year quarter and 74.6% in Q3. CFO Colette Kress said this was "as expected," citing the rollout of its AI-centric Blackwell chip. She went on to say the company expects gross margin to improve later this year, returning to the "mid-70s."

Nvidia's cash stockpile also grew dramatically over the past year, with cash and marketable securities of $43.2 billion, an increase of 66%. Operating cash flow of $16.6 billion jumped 44%.

Concerns overblown

The biggest headline was the commentary provided by Jensen Huang during the call with analysts with respect to the release of DeepSeek late last month. While many investors hit the panic button, the chief executive explained that developments of this nature would increase demand for Nvidia's processors, not reduce it.

"DeepSeek-R1 has ignited global enthusiasm. It's an excellent innovation. But even more importantly, it has open-sourced a world-class reasoning AI model." He also uttered eight words that should be of particular interest to Nvidia shareholders: "Future reasoning models can consume much more compute." Put another way, the evolution and continuing adoption of AI will almost certainly boost demand for Nvidia's state-of-the-art AI chips.

To that end, management expects the company's growth spurt to continue. Nvidia is guiding for record first-quarter revenue of $43 billion, which would represent year-over-year growth of 65%. That was ahead of Wall Street's expectations of roughly $42 billion, but it seemed that investors could only manage a collective to yawn at the results.

If you still have doubts about Nvidia's future potential, consider this: The generative AI market alone could generate economic impact of between $2.6 trillion to $4.4 trillion in the coming years, according to global management consulting firm McKinsey & Company. As the leading provider of AI-centric chips, Nvidia is well-positioned to continue to benefit from this trend.

Despite its growth spurt over the past several years, the stock is still attractively priced, selling for roughly 28 times next year's expected earnings. That's a slight premium, but it's still an attractive price to pay for a company that's expected to increase both its revenue and EPS by more than 50% in its fiscal 2026.

For those reasons and more, I still believe Nvidia stock is a buy.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post CEO Jensen Huang just uttered 8 words that every Nvidia investor should hear appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena has positions in Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shares of Nvidia (NASDAQ: NVDA) gained ground on Wednesday, climbing as much as 5.6%. As of market close, the stock was up 3.67%.

The catalyst that sent the artificial intelligence (AI) chipmaker higher was a report that suggested demand remained high for the company's processors in an important market.

Good news on orders from China

One of the biggest developments for the chipmaker in recent months was the release of a next-generation AI model from start-up DeepSeek in China. The system was reportedly developed for a much lower cost than existing models. Some investors jumped to the conclusion that this would result in lower demand for Nvidia's cutting-edge AI processors, sending its stock swooning.

A report from Reuters on Wednesday suggested that orders for Nvidia's H20 chips jumped as some of the biggest companies in China scramble to increase their AI offerings. The report named Tencent, Alibaba, and TikTok owner ByteDance as companies that have "significantly increased" orders of Nvidia's H20 chip, which was developed to meet U.S. export restrictions to the Chinese market. Not only are these companies among the biggest users of AI in that country, but they are also among the most widely used cloud infrastructure providers in China, suggesting demand for Nvidia's chips remains strong.

We'll know more later today

This is a big day for Nvidia investors. The company is scheduled to release the results of its fiscal 2025 fourth quarter (ended January 26) today. The results, as well as management's commentary during the earnings call with analysts, will provide investors with the latest insights into the continuing demand for AI and — more specifically — demand for Nvidia's recently released AI-centric Blackwell processor.

Management has forecast revenue growth of about 70% year over year, while analysts' consensus estimate is calling for roughly 73% growth in the quarter.

Even after notching gains of 448% over the past three years, Nvidia stock is still reasonably priced, selling for less than 30 times next year's earnings estimates. That could change after Nvidia reports today. Stay tuned.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Nvidia stock rallied ahead of its important financial report appeared first on The Motley Fool Australia.

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Danny Vena has positions in Nvidia and Tencent. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia and Tencent. The Motley Fool Australia’s parent company Motley Fool Holdings recommends Alibaba Group. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shares of Nvidia (NASDAQ: NVDA) gained ground on Wednesday, climbing by 5.35%. 

The catalyst that sent the artificial intelligence (AI) chipmaker higher was news that strong demand for its processors will likely continue.

It's all about the data center

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) released its fourth-quarter financial report after market close on Tuesday, and investors were keen to understand how demand for AI was progressing. The company reported revenue grew 12% year over year to $96 billion, generating diluted earnings per share (EPS) of $2.15, an increase of 31%.

The results were largely in line with Wall Street's expectations, but some investors were troubled by results in the company's cloud segment. Revenue from Google Cloud grew 30% year over year to $12 billion, slightly below consensus estimates of $12.2 billion.

Management explained that the shortfall was the result of tough comps, as it began its AI deployment in the year-ago quarter. Additionally, Alphabet had greater demand for AI than it could provide, so the company is scrambling to bring more capacity online.

What does this have to do with Nvidia?

Alphabet is limited by the number of data centers it has and is investing significantly to rectify that situation. CFO Anat Ashkenazi said that the company planned to spend $75 billion on capital expenditures in 2025, noting the majority of that spending would go toward "technical infrastructure, which includes servers and data centers."

As the principle supplier of the graphics processing units (GPUs) used to power AI in data centers, Nvidia stands to directly benefit from this increased spending. This follows an announcement by Microsoft (NASDAQ: MSFT) that it plans to spend $80 billion on data centers this year, also benefiting Nvidia.

And at just 28 times next year's earnings, Nvidia stock is attractively priced.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Nvidia stock just surged appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena has positions in Alphabet, Microsoft, and Nvidia. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shares of Palantir Technologies (NASDAQ: PLTR) charged out of the gate on Tuesday, spiking as much as 27.7%. As of market close, the stock was still up 23.99%.

The catalyst that sent the artificial intelligence (AI) software and data mining specialist soaring was the company's quarterly financial report and bullish commentary from management that suggests the AI revolution has much further to run.

You can't spell gains without "AI"

In the fourth quarter, Palantir generated revenue that accelerated to 36% year over year (and 14% sequentially) to $828 million. This resulted in adjusted earnings per share (EPS) of $0.14, which soared 75%.

To give the results context, analysts' consensus estimates were calling for revenue of $782 million and adjusted EPS of $0.11, so Palantir cleared both hurdles with ease.

The U.S. commercial segment was the star of the show. Revenue surged 64% year over year and 20% quarter over quarter to $214 million, as waves of new customers flocked to Palantir's Artificial Intelligence Platform (AIP). The segment's customer rolls grew 73% year over year, while its remaining deal value -- or sales that have not yet been recognized as revenue -- soared 99%. Not only was new customer acquisition strong, but existing customers were spending more, as evidenced by a net dollar retention rate of 20%.

Bullish outlook

While there have been questions about the staying power of AI, CEO Alex Karp seemed to put those issues to bed. In the company's shareholder letter, he posited, "We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades."

To punctuate the already robust quarter, management provided full-year guidance that was well ahead of Wall Street's expectations, calling for revenue of roughly $3.75 billion, which would represent year-over-year growth of 31% at the midpoint of its guidance. Palantir also expects U.S. commercial revenue to increase 54%, up from expectations of 50% issued just last quarter.

To be clear, the stock is currently selling for 192 times next year's expected earnings, so it isn't for the faint of heart. This is a great candidate for buying on the dip or dollar-cost averaging.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Palantir Technologies stock just skyrocketed appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena has positions in Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Palantir Technologies. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

There's a compelling argument that recent developments in the field of artificial intelligence (AI) could have vast implications for the future. Over the past couple of years, advances in generative AI have helped fuel a roaring bull market with promises of significant productivity increases. The potential windfall of increased profits has companies racing to adopt these next-generation algorithms.

One of the biggest beneficiaries of these secular tailwinds has been Nvidia (NASDAQ: NVDA). The company's graphic processing units (GPUs), which were initially developed for gaming applications, proved equally adept at supplying the computational horsepower needed for AI. Robust sales of these processors fueled a parabolic rise, sending Nvidia stock up more than 500% over the past two years.

However, claims made by Chinese start-up DeepSeek threatened to upset the existing paradigm, sending Nvidia into a tailspin. The stock slumped 17% and lost nearly $600 billion in market cap in a single day. Nevertheless, after a good night's sleep, Wall Street has some thoughts on the matter.

Perspective is required

Edgar Allan Poe famously wrote, "Believe nothing you hear, and only one half that you see." Wall Street seems to be taking that approach, to a certain extent, regarding some of the assertions made by DeepSeek. Specifically, claims that it created its chatbot for $5.6 million are being met with scepticism by some analysts.

Bernstein analyst Stacy Rasgon wrote in a note to clients (emphasis mine), "Did DeepSeek really 'build OpenAI for $5M?' Of course not." The analyst suggested that many of the routine expenses and development costs were left out of the total. "DeepSeek's R1 paper did not quantify the additional resources that were required to develop the R1 model (presumably they were substantial as well)," he wrote.

Many investors panicked on Monday, fearing that more efficient AI models would mean less business for Nvidia, but that's likely not the case. According to Jevons paradox, efficiency gains from technological advancements generally increase demand by bringing costs down. Put another way, lower-cost AI models will drive increased adoption, which will increase demand for Nvidia's AI-centric processors.

Cantor Fitzgerald analyst C.J. Muse took a similar position: "Innovation is driving down cost of adoption and making AI ubiquitous," he wrote. "We see this progress as positive in the need for more and more compute over time (not less)." This bodes well for Nvidia.

Tigress Financial upgraded Nvidia to strong buy on Tuesday and increased its price target on the stock to a Street-high $220. That represents potential upside for investors of 71% compared to Tuesday's closing price. The analyst believes that the data center growth needed to support AI will continue unabated and Nvidia — which controls a dominant share of the data center GPU market — will continue to profit from this trend.

Even in the wake of the DeepSeek bombshell, Wall Street is almost universally behind Nvidia. Of the 63 analysts who have offered an opinion thus far in January, 94% rate it a buy or strong buy, and none recommend selling.

This shows that Wall Street remains remarkably bullish on Nvidia despite DeepSeek's seemingly earthshaking developments.

The Motley Fool's Opinion

On January 27, a roundtable discussion among Fool analysts took place, and they debated the issues surrounding DeepSeek's announcement. From that conversation, several highlights stand out:

• The panelists echoed the question of whether it cost just $5.6 million to train DeepSeek's chatbot. A review of the white paper supplied by DeepSeek seems to suggest that this only includes the cost for the most recent version and none of the development that preceded it.
• The DeepSeek AI assistant recently became the No.1 downloaded free app on the Apple Store. However, there seems to be a discrepancy between the number of downloads and the actual app usage, which could call into question the veracity of these statistics.
• Those caveats aside, there's the potential that this is the natural evolution of the technology. As resources become more scarce, the focus will inevitably turn toward innovation, breeding the next generation of advancements.
• Even if this represents a breakthrough in AI development, it likely won't reduce the need for Nvidia's state-of-the-art processors, as they will continue to play a crucial role in training AI models.
• The group generally agreed that Nvidia's premium valuation would lead to increased volatility, which would test the mettle of investors.

Collectively, the evidence suggests that DeepSeek's bombshell was more of an inevitable evolution of technology than a major breakthrough.

It's still the early days of the AI revolution, and as such, investors should expect more "bombshell" developments in the field in the months and years to come. Some investors were scared out of Nvidia on Monday, but having a knee-jerk reaction to news like this could be a costly mistake.

Data by YCharts

Finally, Nvidia stock is currently selling for roughly 50 times earnings. While that might be enough to send value investors headed for the exits, that's far below Nvidia's average price-to-earnings (P/E) ratio of 81 over the past five years, making it relatively inexpensive from a historical perspective. Furthermore, the stock gained more than 2,000% during that same period, which illustrates why it is worthy of a premium.

Given the company's long track record and history of innovation, I still believe Nvidia is a worthwhile investment.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should you buy Nvidia shares in the wake of the DeepSeek bombshell? appeared first on The Motley Fool Australia.

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Danny Vena has positions in Apple and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Nvidia. The Motley Fool Australia has recommended Apple and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The Nasdaq Composite has led the market higher over the past couple of years, and while improving economic conditions have likely been the biggest catalyst, developments in the field of artificial intelligence (AI) run a close second. AI has been around for decades, but recent advancements have the potential to be a game-changer by streamlining mundane tasks and increasing productivity.

One of the biggest beneficiaries of this trend is Nvidia (NASDAQ: NVDA), which pioneered the graphics processing units (GPUs) that have become the gold standard for running AI systems. However, reports emerged recently that suggested a Chinese start-up had cracked the code for developing strong AI systems while using inferior chips and novel training processes. If true, this could spell bad news for Nvidia, whose stock has gained roughly 500% over the past two years (as of this writing), fueled by robust sales and even more impressive profits.

While the news is certainly concerning, I predict that once the panic subsides, Nvidia stock will soar to new heights. Here are three reasons why.

1. The devil's in the details

The biggest tech companies in the world have been buying Nvidia GPUs as fast as they can be made, and some reports suggest the supply is sold out for the next year. These AI-centric chips provide the computational horsepower needed to run these cutting-edge algorithms.

However, Chinese start-up DeepSeek claims it was able to achieve similar results using lower-performance processors and at a fraction of the cost. The company claims to have developed its latest system for just $5 million — when competing systems are estimated to cost between $100 million and $1 billion. These claims sent Nvidia — and many other AI-centric tech stocks — plunging. The popular narrative is that if AI models can be created using lower-quality and lower-cost chips, Nvidia's sales will fall off a cliff.

It's important to keep in mind that DeepSeek's claims may not stand up to scrutiny. In a note to clients this weekend, Bernstein analyst Stacy Rasgon wrote, "Did DeepSeek really 'build OpenAI for $5M?' Of course not." The analyst went on to note that many — if not most — of the inherent development costs and additional resources were not included in the price tag, calling the company's claims into question. To be fair, Rasgon suggests the cost to develop DeepSeek's R1 model was still probably less than existing systems, just not as cheap as they would have you believe.

2. An apples-to-oranges comparison

Much of the buildout of AI in data centers — which makes up the bulk of Nvidia's chip sales — has been necessary to meet the accelerating demand for AI. The vast majority of these use cases are business-related.

For example, Microsoft was quick to incorporate AI capabilities across a broad swath of its existing software-as-a-service (SaaS) offerings while also introducing Copilot, its suite of productivity enhancement tools. Palantir Technologies developed its Artificial Intelligence Platform (AIP), which has become the standard bearer for solving real-world business problems using a company's own data. A great many of the applications being developed are geared toward improving productivity for enterprise users.

Yet, as Wedbush analyst Dan Ives points out, "Launching a competitive large language model (LLM) for consumer use cases is one thing … launching broader AI infrastructure is a whole other ballgame, and nothing with DeepSeek makes us believe anything different." Put another way, while chatbots like ChatGPT and DeepSeek's R1 can be intriguing to consumers, they have more limited applications for enterprises, resulting in a much smaller opportunity. Ives goes on to say, "No U.S. Global 2000 is going to use Chinese start-up DeepSeek to launch their AI infrastructure and use cases."

So, while these developments in AI are certainly worth watching closely, they're unlikely to have any immediate near-term impact on the accelerating adoption of AI in the U.S. enterprise market.

3. Nvidia isn't a one-trick pony

It's easy to forget that it wasn't very long ago that the majority of Nvidia's revenue was from graphics cards used by gamers. In fact, as recently as early 2022, Nvidia generated more sales from gaming chips than from data centers. The advent of generative AI changed all that, but it helps illustrate an important point about Nvidia.

CEO Jensen Huang has proven extremely adept at positioning the company for the next big technological breakthrough, as evidenced by its success with AI. While the vast majority of Nvidia's current sales come from outfitting data centers for AI, Huang is already looking to the future.

The company has a deep bench of knowledge in the automotive realm, supplying hardware and software to carmakers working to develop self-driving cars. Nvidia also has a vast library of applications to help businesses build out copilots and agentic AI. It has also invested heavily to fuel advances in communications, robotics, and drones.

Nvidia has its fingers in many pies and we don't yet know what the company's "next big thing" will be. That said, and given Nvidia's history of innovation, it's likely just a matter of time.

Bonus round: All that opportunity at a discounted price

Finally, after Monday's shellacking, Nvidia stock is selling for around 27 times next year's expected earnings. This gives long-term investors the opportunity to buy shares in a company with a track record of innovation and a long runway for growth ahead — all at a discounted price.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Prediction: Once the panic dies down, Nvidia shares will soar to a new record high appeared first on The Motley Fool Australia.

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Danny Vena has positions in Microsoft, Nvidia, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Microsoft, Nvidia, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Microsoft and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shares of Nvidia (NASDAQ: NVDA) surged higher on Tuesday, after taking it on the chin Monday. The maker of graphics processing units (GPUs) used for artificial intelligence (AI) applications had gained 8.82% by the close of trade.

Investors have had a day to digest the news about reported AI developments in China -- and cooler heads are beginning to prevail.

On the heels of a rout

Nvidia stock was crushed on Monday following reports that Chinese AI start-up DeepSeek developed an AI model that delivered comparable results to existing chatbots at a fraction of the cost. The model, dubbed R1, reportedly used far fewer computing resources and was developed using older, less advanced AI chips.

Some investors were concerned this could tank demand for Nvidia's top-shelf processors, and the stock plunged 17%, wiping nearly $600 billion from its market cap.

Many on Wall Street believe the selling has simply gone too far. After digging into the data, Baird analysts are "skeptical" about reports that less advanced chips were used in R1's development. They further believe strong demand for Nvidia's flagship Hopper and Blackwell processors will continue.

Tigress Financial upgraded Nvidia to a strong buy and increased its price target to $220, which represents potential upside for investors of almost 71% compared to today's price. The analysts posit that demand from data centers will remain strong. Nvidia is the leading provider of data center GPUs and stands to benefit from this ongoing trend.

Wedbush analyst Dan Ives called the sell-off a "golden buying opportunity." Even if DeepSeek's claims are true, the analyst suggests that "no U.S. Global 2000 company" will pin their AI future on a Chinese start-up.

Nvidia chimes in

Nvidia CEO Jensen Huang waded into the debate, calling DeepSeek "an excellent AI advancement," saying these developments will fuel further AI adoption, increasing demand for its processors.

Astute investors will note that after Monday's shellacking, Nvidia is much cheaper. The stock is selling for around 47 times earnings, and while that's a premium, that's far below its three-year average of 82. Furthermore, analysts' consensus estimates predict Nvidia's earnings per share will hit $4.45 in fiscal 2026 (which begins later this month). That works out to just 27 times next year's earnings, a reasonable price considering the magnitude of the opportunity.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Nvidia stock just rallied appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena has positions in Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

One of the biggest market drivers of technology stocks over the past couple of years has been rapid advancements in the field of artificial intelligence (AI). These next-generation algorithms took a giant leap forward from their predecessors, promising to streamline processes and improve productivity. Many big tech companies have been spending heavily to get a jump on the technology.

But a Chinese start-up called DeepSeek may have just upended conventional thinking about how best to train AI models. As a result, a slew of AI stocks tumbled on Monday. AI-centric chipmaker Nvidia (NASDAQ: NVDA)  crashed 16.86%, semiconductor specialist Broadcom (NASDAQ: AVGO) crumbled 17.4%, cloud and software giant Microsoft (NASDAQ: MSFT) slumped 2.14%, and cloud computing and search titan Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) fell 4.03%.

Enter DeepSeek

One-year-old Chinese start-up DeepSeek introduced its latest AI model, dubbed R1, and its abilities caught many in the tech world off guard. The performance of the system, which is similar to OpenAI's ChatGPT, quickly ascended the ranks to become one of the top 10 in the world. What made these results even more striking was that they were achieved with older-generation processors at a much lower cost, according to the company.

DeepSeek achieved these remarkable results by taking a new approach to training its AI models. The process, known as reinforcement learning -- or reward-driven optimisation -- appears to be more adept at refining its strategy for problem-solving or attempting different approaches to achieve the desired results.

Thus far, one of the biggest challenges with AI is not knowing how the algorithms arrived at a particular conclusion, making them a "black box." DeepSeek's R1 model shows its work, thus eliminating the uncertainty.

Venture capitalist and well-known tech aficionado Marc Andreessen fueled the fire this weekend when he posted on X (formerly Twitter) that "DeepSeek R1 is one of the most amazing and impressive breakthroughs I've ever seen -- and as open source, a profound gift to the world."

To be clear, experts say that DeepSeek's R1 still trails the performance capability of models produced by OpenAI and Alphabet, but the fact that it was able to do so with a smaller number of inferior chips threatened to upend the existing paradigm.

The potential implications

AI stocks and the broader tech sector plunged on the news, reeling from the potential implications for the industry:

• Nvidia is the gold standard and leading provider of the graphics processing units (GPUs) used to train and run AI systems. The company is believed to control as much as 98% of the data center GPU market, according to semiconductor analyst firm TechInsights. If AI models can be trained on lower-cost, inferior chips, Nvidia has a lot to lose.
• Broadcom supplies many of the networking products that work side-by-side with chips in the data center. The company's Ethernet switching and application-specific integrated circuits (ASICs) help facilitate the movement of data. If demand for these high-end chips falters, sales of ancillary products -- like those in Broadcom's arsenal -- could suffer as well.
• Microsoft helped kick-start the AI revolution with its hefty $13 billion investment in OpenAI and by integrating its AI capabilities across its suite of products and services. The company recently announced plans to spend $80 billion on data centers over the coming year. If there's a more cost-effective approach, customers might not be as willing to fork over top dollar for Microsoft's solutions.
• Alphabet was another company that was quick off the mark, spending heavily to develop next-generation AI models for its Google Cloud customers. Like Microsoft, if there are less costly alternatives, Alphabet's results could suffer.

That said, veteran Wedbush tech analyst Dan Ives called today's sell-off a "golden buying opportunity," noting that many of the claims by the start-up have yet to be verified. He goes on to suggest that "no U.S. Global 2000 [company] is going to use a Chinese start-up DeepSeek to launch their AI infrastructure," saying it doesn't rise to the level of "competitive threat."

Further fueling the decline of some of these stocks is their higher valuations, at least when measured using the most commonly employed metrics. Heading into today's trading, Broadcom, Nvidia, and Microsoft were selling for 200 times, 56 times, and 37 times earnings, respectively. Alphabet was the outlier, selling for a discount at 27 times earnings.

It's important to note that while the price-to-earnings (P/E) ratio is among the most widely used valuation metric, it tends to fall short when assessing high-growth stocks. After today's decline, Nvidia, Microsoft, Broadcom, and Alphabet are selling for 41 times, 33 times, 33 times, and 22 times forward earnings -- so they're not nearly as expensive as they might appear at first glance.

Finally, it's still early days in the development of generative AI. Today is a prime example of a knee-jerk reaction from some investors when a more measured approach is called for. Each of our quartet of stocks has an impressive track record going back decades, and while it may be tempting to follow the crowd and give in to the market panic, astute investors will know to wait for all the evidence to come in before leaping to what could be a costly conclusion.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Nvidia, Microsoft, and other US artificial intelligence (AI) stocks just crashed appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena has positions in Alphabet, Microsoft, and Nvidia. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The past few years have been undeniably profitable for Nvidia (NASDAQ: NVDA) investors. The stock price has surged more than sevenfold over the past two years, and today, it topped the charts as the world's most valuable company in terms of market cap. The stock was up as much as 4.7% Wednesday morning. At market close, the stock was still up 4.43%.

The advent of artificial intelligence (AI) has fueled Nvidia's relentless rise, and a new U.S. government initiative shows there's still a long runway for growth ahead.

A new AI initiative

One of a multitude of announcements by the Trump administration yesterday was the launching of Stargate, a project designed to increase AI infrastructure in the U.S. President Trump announced the joint venture, which will include investments from Oracle, OpenAI, and SoftBank of as much as $500 billion over the next four years. The project will focus on increasing the number of American data centres -- and the energy needed to power them.

The group named several "key initial technology partners" -- and beneficiaries of the initiative -- including Nvidia, Microsoft, and Arm Holdings.

Nvidia pioneered the graphics processing units (GPUs) that underpin most AI systems. Furthermore, these advanced chips are a staple in data centres that house these AI models. Nvidia has absolutely dominated the data centre GPU space, with a market share of 98% in both 2022 and 2023. While the 2024 figures have not yet been released, Nvidia is expected to continue to be the undisputed leader.

Now that it's the world's most valuable company, some investors might believe the time to buy Nvidia has already passed, but these developments show that's not the case. Furthermore, the stock is currently selling for just 32 times next year's expected sales, a remarkably attractive price for a company with so much opportunity.

That's why Nvidia stock is still a buy.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Nvidia just became the world's most valuable company. Is it too late to buy the stock? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena has positions in Microsoft and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Microsoft, Nvidia, and Oracle. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Microsoft and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shares of Nvidia (NASDAQ: NVDA) were under pressure on Tuesday, falling by 6.22%.

Nvidia stock appeared to be caught up in overall market weakness, and taking a breather after closing at a new record high on Monday. Furthermore, investors seem to be digesting the myriad product announcements from the artificial intelligence (AI) chipmaker in conjunction with the kickoff of CES yesterday in Las Vegas.

Drinking from a firehose

CEO Jensen Huang was the keynote speaker to open CES on Monday, and his address came with a long list of product announcements, including:

• Project DIGITS, a pocket-sized personal AI supercomputer powered by its Grace Blackwell Superchip.
• New next-generation GeForce RTX 50 series gaming GPUs and laptops powered by AI and its Blackwell architecture.
• The Cosmos platform with new AI models for robots, autonomous vehicles, and computer vision.
• AI Blueprints for Agentic AI, a system that helps developers "build, test, and run AI agents anywhere" to automate a laundry list of business functions.

There were other, less groundbreaking announcements, but you get the picture.

Nvidia stock had reached a new all-time high in early November, only to lose more than 13% of its value on no news. After this all-too-brief correction, however, Nvidia has enjoyed a stellar rebound, notching a new record close on Monday.

The road ahead

Wedbush analyst Dan Ives noted that Huang's speech at the event "felt more like a rock concert vibe than a tech CEO speech." He went on to suggest that despite Nvidia's meteoric rise of more than 900% over the past two years, the stock still has room to run. Nvidia's market cap -- which currently sits at roughly $3.5 trillion -- will ultimately clear $4 trillion and could run as high as $5 trillion over the coming 12 to 18 months, which suggests potential upside of over 40%.

Yet for all that opportunity, Nvidia stock is remarkably affordable, selling for roughly 32 times its estimated earnings for fiscal 2026, which begins in late January.

That's why I still view Nvidia stock as a buy.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Nvidia stock just slumped 6% appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena has positions in Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The Nvidia (NASDAQ: NVDA) share price hit a new all-time high Monday morning, shaking off its mid-December slump and jumping as much as 5.3%. By market close, the stock was still up 3.43%.

There were a couple of developments that sent the artificial intelligence (AI) chipmaker higher, as shareholders eagerly await an update from the company's rock star CEO.

Kicking off CES

CES is one of the biggest tech-focused events in the world. The annual trade show brings together many of the latest developments in technology and features some of the industry's biggest names. Nvidia CEO Jensen Huang is scheduled to kick off the event Monday evening by delivering the highly anticipated keynote address. Huang is expected to provide insight into the state of AI adoption and demand for Nvidia's recently released Blackwell processors, and potentially provide details about its upcoming Rubin platform. There are also rumours Huang could announce the development of an AI-centric CPU.

Excitement about Huang's appearance notwithstanding, Nvidia shareholders had other reasons to be enthusiastic. Global electronics company Hon Hai Precision Industry, more commonly referred to as Foxconn, announced yesterday that robust demand for AI-centric servers fueled record fourth-quarter results and management expects its growth spurt to continue into the first quarter. Nvidia supplies Foxconn with many of the graphics processing units (GPUs) used to power AI in its cloud and networking devices, which bodes well for the chipmaker.

Is Nvidia stock a buy near a new all-time high?

The evidence suggests that the adoption of AI is still in the early stages and Nvidia is a pivotal player in the space. It might seem expensive at 59 times earnings, but looking ahead, Nvidia is selling for just 34 times next year's expected earnings, a much more palatable multiple. Furthermore, for the past 10 years, Nvidia has traded for 59 times earnings on average, which suggests that the stock isn't really that expensive from a historical perspective.

The AI market is expected to be worth as much as $15.7 trillion by 2030, according to Big Four accounting firm PwC, which also suggests that "AI is still at a very early stage."

Given its critical role in the advances in AI, I'd say that makes Nvidia stock a buy.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why the Nvidia share price just rallied to a record high appeared first on The Motley Fool Australia.

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Danny Vena has positions in Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

There's no denying that 2024 has been a banner year for Nvidia (NASDAQ: NVDA). The company cemented its position as the gold standard for graphics processing units (GPUs) that underpin artificial intelligence (AI), and the future continues to look bright. Since the AI revolution kicked off in early 2023, the stock has gained more than 850%, with 182% gains this year alone.

But this doesn't tell the entire story. Over the past six months, even as its business has continued to ramp up, Nvidia's stock price has stalled. Concerns about the future adoption of AI, the specter of competition, and a lofty valuation have sent some investors to the sidelines, wondering if the company's best days are behind it.

Let's look at what lies ahead for Nvidia and if the stock still represents a compelling opportunity for investors heading into the new year.

Catalysts abound

There are a number of catalysts that could move Nvidia stock in the early part of 2025, so investors should mark their calendars.

CEO Jensen Huang is something of a rock star in the investing community. The popular chief executive tends to generate excitement that has the potential to move Nvidia's stock price whenever he makes public addresses. One such appearance is the opening of the Consumer Electronics Show (CES), as Huang is scheduled to give the keynote address on Jan. 6.

Huang has his finger on the pulse of the technology industry and is expected to provide his views on the pace of AI adoption and the state of the technology in general. Perhaps more importantly, it's likely he will also give an update on demand for Nvidia's Blackwell platform. The next-generation processor, which is purpose-built for AI applications, was scheduled to begin shipping earlier this month. Huang has previously described demand for the chips as "insane," so expectations are high, and any positive update will likely give the stock a boost.

In fact, Citi analyst Atif Malik put Nvidia on a "positive catalyst watch" ahead of Huang's appearance. The analyst maintains a buy rating and a price target of $175, which suggests potential upside of 25% compared to Tuesday's closing price. Malik believes an update on the sale of Blackwell and the potential for increasing margins could send the stock higher.

It's worth taking a moment to review investor concerns regarding Nvidia's margins. The company's gross profit margin hit an all-time high of 78.4% during its fiscal 2025 first quarter (ended April 28). However, in the two quarters that followed, those margins slid to 75.1% and 74.6%. Management chalked those declines up to "inventory provisions" related to its upcoming Blackwell launch and is guiding for a gross profit margin of 73% in the current quarter. In some cases, declining profit margins can be a red flag over the longer term, but a decline over two quarters is too small a sample size for investors to be concerned -- particularly on the heels of a record-breaking performance in Q1 and an upcoming product launch.

The most significant potential catalyst on the horizon is Nvidia's fiscal 2025 fourth-quarter financial report, which is scheduled to be released on Feb. 26. Management is guiding for revenue of $37.5 billion, which would represent growth of about 70%, though Nvidia has a long history of issuing conservative guidance. For example, after issuing a forecast for 79% growth in Q3, Nvidia delivered growth of roughly 94%. If Blackwell shipments end up being more robust than expected -- and history suggests it could -- the company could blow past Wall Street's expectations, which could also push Nvidia stock higher.

Finally, investor fears that the adoption of AI could stall appear overblown. A study by Big Four accounting firm PwC estimates that AI has the potential to add as much as $15.7 trillion to the global economy by 2030. In fact, the data suggests that as much as 45% of all economic gains during the period could be the result of product enhancements from AI, sparking additional consumer demand.

Should investors buy Nvidia before 2025?

There's one final reason investors should consider buying Nvidia stock before 2025 -- its valuation -- but that requires some context.

Early this year, when excitement regarding AI had reached a crescendo, Nvidia stock was selling for 83 times earnings. Over the course of the past year, however, that multiple has fallen steadily, and the stock is currently selling for 55 times earnings. While that might still seem expensive at first glance, it's worth putting into historical context. Over the past decade, Nvidia has had an average price-to-earnings (P/E) ratio of 59, which shows its current multiple is historically cheap.

Furthermore, Nvidia is expected to generate earnings per share (EPS) of $4.43 in fiscal 2026, according to Wall Street. That works out to just 32 times next year's expected earnings, which is an appealing valuation for a company with such a sterling track record of growth.

Taken together, Huang's upcoming appearance at CES, the blockbuster potential for Nvidia's next-generation Blackwell AI processor, the potential for improving margins, a compelling valuation, and the company's pivotal role in recent AI advances suggest there's potential upside over the near term.

That said, investors looking to make a quick buck should exercise care. Any one of the aforementioned catalysts could go the other way, sending the stock lower, at least temporarily.

Here's the thing: If you believe, like I do, that AI has the potential to transform industries and that Nvidia is one of the principal beneficiaries of this trend, then buy Nvidia stock and hang on for the wild ride to come. It doesn't matter if you buy the stock before 2025 -- as long as you buy it.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should You Buy Nvidia Stock Before 2025? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

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• Why now could be the time to buy these popular ASX ETFs

Citigroup is an advertising partner of Motley Fool Money. Danny Vena has positions in Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Recent advances in artificial intelligence (AI) could have a profound impact on our lives. The ability to automate and streamline tasks and create original content has the potential to increase productivity and save time and money.

One company that's been on the bleeding edge of that trend is Nvidia (NASDAQ: NVDA). The company's graphics processing units (GPUs) are the gold standard used to underpin this revolutionary technology, which has fueled a stratospheric increase in its sales and profits — and, ultimately, the Nvidia share price.

Nvidia is up by around 850% since early last year, as of this writing, but it has also seen a commensurate increase in its valuation. The company currently has a price-to-earnings (P/E) ratio of around 55, well above the 31 multiple for the S&P 500. While that might seem expensive at first glance, appearances can be deceiving, and the stock isn't as expensive as you might think.

History can be instructive

While valuation metrics can be helpful tools to assess whether a stock is fairly valued, they should never be considered in a vacuum. For example, a stock can trade at a premium if it has a strong potential for future growth, market dominance, or a strong history of innovation. Nvidia meets all of these criteria, which helps explain why investors are willing to pay up for the stock.

For example, for its fiscal fourth quarter, which ends January 28, Nvidia is guiding for revenue of $37.5 billion, which would represent year-over-year growth of 70%, with a commensurate increase in its profitability. It's estimated that Nvidia controls between 70% and 95% of the advanced AI chip market, leaving crumbs for rivals. And its Blackwell AI processor is the most powerful AI-centric processor ever built, as Nvidia's history of innovation continues.

However, one chart shows Nvidia shares aren't as expensive as you might think.

Data by YCharts

You might think Nvidia is expensive at around 55 times earnings, but that's a bargain compared with its five-year average multiple of 81. Furthermore, at 32 times next year's expected earnings, Nvidia is attractively priced, especially when considering its growth prospects.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Think Nvidia shares are expensive? This chart might change your mind appeared first on The Motley Fool Australia.

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• Why now could be the time to buy these popular ASX ETFs

Danny Vena has positions in Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.