Nvidia (NASDAQ: NVDA) has delivered investors a year full of records, milestones, and successes. The top artificial intelligence (AI) chip designer has reported its highest revenue ever quarter after quarter and was invited to join the prestigious Dow Jones Industrial Average. In addition, Nvidia says demand for its new Blackwell architecture is soaring. On top of this, the tech giant’s stock has climbed about 160% this year, making it the best performer in the Dow.
As the AI boom continues, Nvidia looks like the perfect stock to buy in order to benefit. The company holds 80% of the AI chip market and has built an entire portfolio of related products and services. Today’s $200 billion AI market is forecast to reach beyond $1 trillion by the end of the decade, and Nvidia’s well-positioned to benefit.
But when exactly should you buy Nvidia stock? It’s true the stock could react to any comments from the company about its innovations, general demand for its products, or the progress of the Blackwell launch. And that makes me think of a particular event that’s coming up on Jan. 6, 2025. Should you buy Nvidia shares before that date?
First, here’s a quick summary of Nvidia’s path so far. This tech powerhouse’s graphics processing units (GPUs) mainly powered video games in their earlier days, but their ability to handle multiple tasks at once made them ideal for other areas, too — particularly AI. And because they’re the fastest around, they quickly became a favorite of AI customers.
This has resulted in triple-digit revenue growth in most of the recent quarters, with revenue reaching a record of more than $35 billion in the latest period, and this is with gross margin of more than 70%. This means Nvidia is highly profitable on sales. Nvidia’s return on invested capital (ROIC) over the past few years shows the company has made wise investments.
Time to consider what’s coming up on Jan. 6, and that’s CES 2025, otherwise known as the Consumer Electronics Show in Las Vegas where Nvidia Chief Executive Officer Jensen Huang will give the keynote speech. Then, from Jan. 7 through Jan. 10, Nvidia will meet with journalists and analysts and be present on the show floor, where attendees can see how the company is powering products of today and tomorrow.
In the past, Nvidia has offered an early look at its technology at CES (for example, the Nvidia Shield streaming media device and the Nvidia Drive platform for autonomous vehicles). The chip giant hasn’t offered any hints of what it may present this time around, but a report from Wccftech, citing Nvidia partner Inno3D, suggests Nvidia may showcase AI innovations like “neural rendering” in the consumer-gaming GPU market.
