Nvidia (NASDAQ: NVDA) has soared a remarkable 80% since the beginning of the year, driven by its exceptional earnings performance and strong position in the artificial intelligence (AI) chip market.
The company holds over 80% market share and offers a wide array of products and services crucial for AI projects.
The key to Nvidia's success lies in its offering of the fastest chip available, currently the H100 graphics processing unit (GPU).
Looking ahead, Nvidia is set to introduce new products as it continues to heavily invest in research and development (R&D), with R&D spending increasing by 18% last year to $8.6 billion.
This strong performance indicates that there is still potential for Nvidia's stock to grow, especially with the upcoming GTC AI Conference scheduled from Monday through Thursday.
The conference, featuring a keynote by CEO Jensen Huang and over 900 sessions with industry experts, is expected to generate excitement as it marks the first in-person event since before the pandemic.
Investors are particularly interested in hearing about Nvidia's plans for accelerated computing, generative AI, and robotics in Huang's keynote.
There is speculation that Nvidia may unveil its highly anticipated Blackwell architecture, including the B100 AI chip, which is expected to more than double the performance of the upcoming H200 in inference tasks.
While Nvidia has not announced a specific release date for Blackwell, indications suggest it could be later this year.
Huang may also provide updates on other products and potential collaborations during the conference.
One risk for Nvidia is the potential for competitors to gain ground and reduce its market share, highlighting the importance of continuous GPU improvements to stay ahead.
Therefore, updates on Blackwell and other innovations are crucial for investors to monitor.
In conclusion, while investing in Nvidia this week could capitalize on current momentum, it is not necessary for long-term success.
Nvidia remains a top buy for the long term, given its dominance in the high-growth AI market and its ongoing innovation.
Whether you invest now or later, Nvidia's growth prospects and reasonable valuation of 36 times forward earnings estimates make it an attractive investment for the future.