Nvidia (NASDAQ: NVDA) saw a 171% surge last year and has solidified its position as a leader in the rapidly growing artificial intelligence (AI) sector. The company dominates the AI chip market, boasts an extensive range of AI products and services, and serves as the go-to partner for companies seeking to develop an AI platform.
Nvidia’s earnings skyrocketed, driven largely by its data center business, which caters to AI customers. In the most recent quarter, revenue reached a record $35 billion, surpassing annual figures just two years ago. This impressive growth has bolstered Nvidia and its shareholders, but investors are now curious about whether the momentum will continue.
Recent concerns about demand for Nvidia’s pricey AI chips were sparked by Chinese company DeepSeek’s news last month. However, two key factors suggest that Nvidia is an attractive investment opportunity in February:
Firstly, Nvidia’s latest chip architecture, Blackwell, has been met with “staggering” demand from major tech companies like Meta Platforms and Amazon. The product’s expected revenue of several billions of dollars in the fourth quarter indicates a promising start.
Secondly, despite concerns about U.S. tech companies’ spending on AI, Nvidia’s high-performance GPUs have consistently demonstrated their efficiency advantages over its competitors. It is unlikely that customers will abandon the latest innovations, ensuring continued demand for Nvidia’s products.
Two reasons to buy Nvidia now:
1. Upcoming quarterly earnings: Nvidia’s fiscal fourth-quarter earnings report, scheduled for February 26, will provide valuable insights into the Blackwell launch and initial revenue from the platform.
2. Ongoing AI infrastructure build-out and new growth opportunities: Nvidia benefits from both its participation in the U.S. $500 billion infrastructure project and the emerging trend of companies applying AI to their businesses. The company’s blueprint for integrating with Nvidia Enterprise software enables customers to develop their own AI agents, positioning Nvidia for success in this growing market.
Investing $1,000 in Nvidia at present could yield significant returns both short-term and long-term.
Source: https://www.nasdaq.com/articles/nvidia-could-be-no-brainer-buy-february