Nvidia's (NASDAQ: NVDA) stock has soared by an impressive 80% since the beginning of the year, driven by the company's record-breaking earnings and its dominant position in the artificial intelligence (AI) chip market.
With over an 80% market share, Nvidia offers a wide range of products and services that power AI projects.
The key to Nvidia's success lies in its cutting-edge technology. Currently, its fastest chip is the H100 graphics processing unit (GPU), but the company is continuously investing in research and development (R&D) to launch new products in the future.
Last year, Nvidia's R&D spending increased by 18% to $8.6 billion.
Investors are optimistic about Nvidia's future performance, especially this week during the GTC AI Conference.
The conference, which runs from Monday to Thursday, features a keynote speech by CEO Jensen Huang and over 900 sessions with industry experts.
This is the first in-person conference since before the pandemic, adding to the excitement.
During the conference, investors will be paying close attention to Huang's keynote, which is expected to focus on accelerated computing, generative AI, and robotics.
There are speculations that Nvidia might unveil its next-generation GPU architecture, Blackwell, and the B100 AI chip, which is expected to more than double the performance of the H200 in inference tasks.
Despite the potential short-term gains, Nvidia is considered a top long-term investment due to its dominant position in the high-growth AI market and its commitment to innovation.
Whether you invest in Nvidia this week or later, the company's strong growth prospects suggest that it could be a lucrative investment over the long term.
It's important to note that while Nvidia's shares trade at 36 times forward earnings estimates, the company's rapid pace of innovation and its potential for future AI advancements make it a compelling investment opportunity.