Nvidia (Nvda 5.27%)) The action was a major winner for investors during the boom of artificial intelligence (AI). This flea leader has seen its shares increase by 2,000% breathtaking in the past five years. This is thanks to the demand for the company’s graphic processing units (GPU) – fleas supplying the tasks of the key AI such as training and inference. But this is also due to the expansion of Nvidia beyond the GPU to offer an entire portfolio of related products and services, making the company the essential destination for anything AI.
In recent times, however, the stock, with the general market, has been in the slump. This month, the Nasdaq and the S&P 500 entered the correction territory, falling by 10% of their most recent summits, while investors were concerned about the impact President Trump’s prices Imports are said to have the economy and business profits. Nvidia slipped around 12% in the last month.
But I don’t think Nvidia is suffering for a very long time. In fact, I predict that Nvidia’s actions will soar this year – and positive impetus could start after March 18. Learn more.
Image source: Getty Images.
Nvidia record income
First, a quick summary of Nvidia’s story so far. The domination of the company in the GPU market – it holds 80% – and the general forces of AI have led to a triple and triple figure of income growth after quarter in recent years. Last year, income increased by 114% to more than $ 130 billion, a record level. And Nvidia made it possible to achieve high profitability on sales, the gross margin exceeding 70% even in period of higher spending, such as the recent launch of its Blackwell architecture.
Above all, Nvidia focuses on innovation, with a commitment to update its GPU on an annual basis and the company is about to show that it can keep the promise. Nvidia has just launched Blackwell during the recent quarter and aims to publish Blackwell Ultra later this year – then Verra Rubin architecture should follow a few months after that.
Now consider my prediction. I think that all these elements will lift the actions of Nvidia this year, as well as the idea that the history of long -term growth of AI has not changed. Even if the Trump administration prices weigh on businesses and the short -term economy, this does not change the fact that the world moves to accelerated computers. Analysts expect the ia ia market to $ 200 billion today reaching more than $ 1 Billion by the end of the decade, and Nvidia is perfectly positioned to benefit because it sells tools and services to approach each growth and use phase of AI.
Why will the stock increase now?
But why will this positive momentum begin now? The NVIDIA GTC AI annual conference occurs this week, and the CEO Jensen Huang will seize on March 18. He has already offered us clues to what he will talk about:
“Come to the GTC, and I will tell you about Blackwell Ultra, Vera Rubin, then you show what we place after that,” said Huang during the recent calls from Nvidia.
So it’s likely Huang will deliver Key details on the calendar and the performance of these upcoming products. This could reassure investors on Nvidia’s potential so that growth passes in the long term – even through difficult times. In addition to that, Nvidia’s actions have reached levels of good deals, offering investors a fantastic entry point. His recent decrease left him to the exchange of 27 times Extreme profits estimatesmore than 50 in January.
Of course, NVIDIA’s actions may not take off immediately on March 18 or 19 and roar regularly for the rest of the year – the general economic and political news could interfere to some of the elevators of uncertainty. But News Huang provides during the conference can offer the stock an elevator and roll the ball.
All this means that this is the ideal time for investors to look at Nvidia through a long -term objective and to take stocks of this Top ai stock.
Adria Cimino Has no position in the actions mentioned. The Motley Fool has positions and recommends Nvidia. The Word’s madman has a Disclosure policy.