Nvidia (Nvda 6.43%)) does not develop large language models. It does not create computer games franchises. It also does not manufacture humanoid robots or autonomous vehicles. What Nvidia does is to create the computer material technologies necessary for all these efforts.
Companies around the world devote capital to these projects. Nvidia has been and will continue to be a leading calculation provider for these technologies. With a series of products that offers hardware, software and other expertise, it should remain at the forefront while businesses continue to move forward and innovate.
However, this is not the real reason why Nvidia’s actions can hover over the next five years.
Be greedy when others are afraid
A stock market correction can be the best friend of a long -term investor. THE Nasdaq Composite The index has now Correction territory entered Since its fence top of 20 174 on December 16. A result of the slowdown in the market is a drop of more than 20% of NVIDIA shares so far this year.
Large companies are Invest hundreds of billions of dollars In the infrastructure of artificial intelligence (AI), a great reason why Nvidia generated more than $ 130 billion in income last year.
Management provides that the first quarter of NVIDIA 2026, which started at the end of January, will see income growth of 65% over the period of the previous year. This impressive increase should slow down as the year progresses and that it faces more strict comparisons. But new catalysts could reactive sales growth in the coming years.
These include growing companies outside the data centers for Nvidia. The company’s game segment increased 9% income last year. Professional visualization – which includes a new personal IA supercomputer – increased sales by 21%, while robotics and car income has climbed by 55%.
Nvidia has many irons in fire which could all contribute significantly over the next five years. With actions merchanting almost 30% below the heights of the beginning of January, this is the right time to follow The advice of Warren Buffett And buy this big stock while others are afraid.