Nvidia’s (NVDA) Teflon-like stock may be taking a few swipes as the year winds down, but a new chapter awaits the AI market darling — and with it more impressive quarters of growth, experts and investors believe.
“Nvidia is printing money like Apple did in the early days of the iPhone,” Gerber Kawasaki Wealth and Investment Management president Ross Gerber said on Yahoo Finance’s Catalysts (video above), later adding, “the opportunity for AI is somewhat limitless at this point.”
Gerber, who has been an investor in Nvidia for the past decade after it rose to popularity for its high-performance gaming chips, thinks the company is entering its “next leg” of growth.
The growth is to be fueled by rapid global buildouts of artificial intelligence infrastructure, powered in large part by Nvidia’s leading-edge chips.
“Nvidia is not a highly expensive stock, but it’s not a cheap stock,” Gerber said. But the actual profits that they’re driving and their monopoly position in the chip business just puts the next five years looking really good for Nvidia.
“I certainly wouldn’t get off it now,” he added. “So for investors, Nvidia needs to be a part of your portfolio just as much as Apple and Microsoft.”
The excitement around what lies ahead for Nvidia is captured in retail investor inflows.
Nvidia has attracted $30 billion in retail investor inflows so far this year, according to data from Vanda Research. It makes Nvidia the most popular stock among retail investors in 2024, ahead of the SPDR S&P 500 ETF (SPY), with $15.3 billion in inflows, and Tesla (TSLA), with $14.7 billion.
Some traders have opted to get off the Nvidia rocket ship this month, however.
Shares of the new Dow Jones Industrial Average component are up just 0.7% in the past month. The Dow is down 10% in the last month, while the S&P 500 has lost about 1.7%.
Nvidia shares are still higher by 181% year to date.
The stock is facing a soul-searching moment, according to Bank of America semiconductor analyst Vivek Arya. This is related to several factors, including execution issues while trying to push through leading innovation and concerns around China exposure ahead of potential tariffs from returning president Trump.
“Some of these [issues] are company-specific forces,” Arya said on Yahoo Finance’s Opening Bid podcast (listen below), “and some of these are market forces.”
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The switch to Nvidia’s Blackwell AI chip — which won Yahoo Finance’s 2024 Product of the Year award — hasn’t been seamless, Arya explained, and this has unnerved the bulls.
