Should You Buy Nvidia Stock Before June 24?
Written by Adria Cimino for The Motley Fool -> Nvidia sells the world’s most sought-after AI chips, those that fuel key tasks along every step of the AI path. This has translated into explosive earnings growth and stock performance. Nvidia (NASDAQ: NVDA) has proven itself to b
Nvidia sells the world’s most sought-after AI chips, those that fuel key tasks along every step of the AI path.
This has translated into explosive earnings growth and stock performance.
Nvidia (NASDAQ: NVDA) has proven itself to be an excellent investment in recent years -- it's soared 1,000% over the past five. The artificial intelligence (AI) chip giant has been among the first companies to monetize its AI investments in a big way. This is because Nvidia's chips are an essential tool for customers throughout their AI path -- from the training of models to the actual use of the technology to address real problems.
And this demand for chips has helped push Nvidia's earnings to record levels. For example, in the latest full year, revenue rose 65% to $215 billion. And net income climbed to $120 billion. Though rivals exist, customers flock to Nvidia because its chips -- known as graphics processing units (GPUs) -- offer the fastest speed around. Speed is an important advantage because it favors efficiency and allows a customer to bring its AI projects to commercialization sooner -- and both of these elements may reduce total costs over time.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Nvidia stock clearly is a great stock to own, but now the question is: When should you actually make the purchase? Should you pick up the shares ahead of a potential catalyst on June 24? Let's find out.
First, we'll start by diving a little deeper into the Nvidia story. The company, as mentioned, has become an AI chip giant thanks to its top-performing GPUs . But Nvidia isn't just a chip player. These chips are part of entire systems, including a range of products and services -- from networking tools to enterprise software. Nvidia has even designed platforms that address problems and needs of specific industries: For example, the company offers pharmaceutical and biotech companies solutions for AI-assisted drug discovery.
And Nvidia has become a key partner for companies developing tomorrow's technology, from autonomous vehicles to humanoid robots and even next-generation telecom. All of this has broadened Nvidia's reach well beyond the GPU itself -- and secured its spot in the AI story as it develops and expands.
