Nvidia (NVDA +3.80%) has proven its status as an artificial intelligence (AI) winner over a variety of time periods -- from the short term to the long term. For example, it’s climbed about 30% just this year and has soared 1,200% over the past five years. This is thanks to Nvidia’s top AI chips, which have conquered the AI market -- they’re the fastest around, and this is very valuable for tech giants aiming to win in the AI race.
All of this makes Nvidia a great buy for any investors interested in betting on the future of AI. But the big question often is: When should you buy? Sometimes, investors look to potential stock price catalysts, such as an earnings report or an event that may renew excitement about the company -- and push the stock price higher. One such occasion is right around the corner, set to begin on Jan. 6. Should you get in on Nvidia beforehand? Let’s find out.
Image source: Getty Images.
Nvidia’s rivals
First, though, let’s consider why Nvidia has drawn this much attention -- after all, it’s not the only AI chip designer around, as it competes with players including Advanced Micro Devices and Broadcom. And even some of Nvidia’s own customers, like Amazon, are producing their own chips, so they compete with the chip giant to some degree.
But, as mentioned, Nvidia sells the world’s highest-performance chips as well as an entire portfolio of products and services -- making it almost a one-stop place for AI customers to shop for all of their needs. This has translated into spectacular growth for the company, with revenue and profit reaching record levels quarter after quarter.
And, with AI spending forecast to reach into the trillions of dollars over the coming five years, Nvidia may have plenty of bright days ahead.
Now, let’s consider what’s happening as of Jan. 6, and that’s a massive consumer electronics show known as CES. It’s the opportunity for tech giants to show off their latest innovations as well as make new product announcements.
NASDAQ: NVDA
Key Data Points
The spotlight on Nvidia
Attendees may visit an Nvidia showcase daily from Jan. 6 through Jan. 8 at the event to see more than 20 demos and speak with experts from the company. Nvidia has scheduled special sessions on physical AI, as well as AI in manufacturing, drug discovery, and more. Lenovo’s Tech World also will be unfolding during CES, and Nvidia chief Jensen Huang will be one of the speakers at the event.
So, could all of this represent a catalyst for Nvidia’s stock? I wouldn’t expect a major new announcement from Huang since the company recently reported earnings -- on Nov. 21 -- so may not have an update in such a short period of time. And since the focus is on consumer electronics, Huang may not choose this moment to talk about subjects such as Nvidia’s presence in China. (After several months of halted sales there due to export controls, the U.S. recently said Nvidia could start selling its H200 chip to China.)
A reminder of Nvidia’s AI strengths
Still, Nvidia probably will talk about the role of its chips in areas such as robotics and drug discovery, reminding attendees and investors that the potential of the company’s products and services doesn’t end with the training of AI models. Nvidia’s chips will fuel the application of AI to real-world problems, meaning the company’s growth could continue at high levels well into the future.
It's possible that any details about this growth opportunity -- the actual use of AI -- could generate some excitement among investors and push the stock higher. But, as I mentioned, I wouldn’t expect significant news from Nvidia, so any gains may be small or even temporary.
Now, let’s get back to our question: Should you buy Nvidia before Jan. 6 to get in on any potential pop in the stock? Not necessarily. As I said, Nvidia isn’t likely to deliver game-changing gains during or after this event, so whether you buy the stock today or after the show won’t make much difference over the long term.
That said, Nvidia still makes an excellent buy for investors looking for an AI winner -- and the great news is you can get in on this stock at your leisure and don’t have to rush in at one specific moment to score a win over time.
