Nvidia (NVDA) remains a critical investment for those looking to capitalize on the ongoing artificial intelligence (AI) revolution, according to prominent tech investors.
Ross Gerber, co-founder of Gerber Kawasaki Wealth and Investment Management, strongly advised investors not to miss out on what he sees as a transformative opportunity.
“If you don’t own Nvidia, you are literally missing out on a revolution,” Gerber told Yahoo Finance, comparing those who avoid Nvidia stock to people ignoring key opportunities during historical turning points, such as the French Revolution.
Nvidia, initially known for its dominance in gaming chips, has significantly expanded its portfolio, focusing on AI and autonomous vehicle technology. This strategic pivot has paid off handsomely, with the company’s stock rising more than 2,900% in the last five years. As Nvidia prepares to release its second-quarter results, investors are keenly anticipating continued strong performance, with expected revenue and earnings increases of 113% and 156%, respectively.
The bullish sentiment around Nvidia is widespread. EMJ Capital founder Eric Jackson recently predicted the company could reach a $6 trillion market cap, nearly doubling its current value. Similarly, Goldman Sachs analyst Toshiya Hari has maintained a Buy rating on Nvidia, outlining robust demand from major clients like Alphabet, Meta, Microsoft, and Amazon.
However, Nvidia’s stock has experienced volatility. After reaching a record high in June, the stock lost nearly 30% of its value within seven weeks. Nevertheless, it has since rebounded, with investors closely watching the upcoming earnings report for any signs of declining AI demand or tightening budgets from key cloud customers.
Despite potential delays in the release of its next-generation AI chips, Nvidia remains well-positioned to capitalize on the AI boom. Analysts and investors alike see Nvidia as a cornerstone of modern technology portfolios, with its GPUs playing a pivotal role in the development of AI and data center infrastructure worldwide.
Yahoo Finance and CNBC contributed to the report.
