Must Read: NVIDIA Is Back at Record Highs – Should You Buy?

NVIDIA Is Back at Record Highs – Should You Buy?

Dear Reader,

There is one stock I have been backing years before the majority of Wall Street saw its potential.

While others were busy chasing passing market trends and fads, I spotted the power behind this company’s role in driving the AI Boom. It was the S&P 500’s top-performing stock in 2023 and one of the top performers this year.

I’m talking about NVIDIA Corporation (NVDA), of course.

Now, back in June, I predicted that NVIDIA would be a $5 trillion company. This is after its market cap hit $3.35 trillion – sailing past Microsoft Corporation’s (MSFT) $3.317 trillion market cap and briefly making NVIDIA the largest publicly traded company in the world.

The stock hit a bit of a speedbump in May following its quarterly earnings report. Second-quarter revenue soared 122% year-over-year and earnings surged 152% year-over-year – topping analysts’ estimates on both the top and bottom lines. These results should have propelled the stock higher, but investors’ expectations were even higher, and the stock sold off.

Following the earnings report, NVDA has struggled to find its footing… until last week.

Last Tuesday, the stock closed just a few dollars shy of the all-time high of $135.58 that it set back in June. NVDA consolidated these recent gains on Wednesday before resuming its climb on Thursday and hitting another record high. You can see NVDA’s performance in the chart below.

At a market cap of $3.36 trillion, it’s now the second-most valuable company in the world. (Apple Inc. [AAPL] remains the first with a $3.53 trillion market cap.) So, in today’s Market 360, I’ll share what the main catalyst was behind NVDA’s surge – and why my $5 trillion market cap prediction may come true even sooner than expected. Then, I’ll share where I see the next NVIDIA coming from, and how you can profit.

What Sparked NVIDIA’s Recent Surge

Part of the recent strength can be attributed to the positive comments from NVIDIA founder and CEO, Jensen Huang, on CNBC’s “Closing Bell Overtime” at the beginning of the month. Huang stated:

Blackwell is in full production, Blackwell is as planned, and the demand for Blackwell is insane. Everyone wants the most, and everyone wants to be first. The thing that we have done with Blackwell, and what we have announced, is this new AI infrastructure generation every single year. And so we are going to update our platform every single year and the reason for that is, if we can increase the performance… by 2 to 3 times each year, we are effectively increasing the revenue, or throughput, for our customers on these infrastructures by 2 to 3 times each year.

These comments from Huang effectively put to bed any concerns about further delays in the rollout of the Blackwell chips, as well as any doubts about demand after rumors of a potential decline in AI infrastructure spending from the Big Tech companies.

What this means is these Blackwell chips are already in hot demand, with companies like Microsoft, Meta Platforms, Inc. (META) and OpenAI customers. Additionally, according to some analysts at Morgan Stanley, NVIDIA’s Blackwell is already sold out for the next 12 months.

So, we’ll likely see some of the strong Blackwell chip demand show up in NVIDIA’s third-quarter results on Tuesday, November 19. The company anticipates third-quarter sales of $32.5 billion, which is up from $18.12 billion in the same quarter a year ago. Analysts expect third-quarter earnings to double year-over-year to $0.74 per share, and estimates have been revised higher in the past three months.

However, the Blackwell chips should have a more significant impact on the company’s fourth-quarter results. KeyBanc recently estimated that revenue from NVIDIA’s Blackwell chips will reach $7.0 billion in the fourth quarter, and demand for the company’s other GPUs is also anticipated to be “extremely robust.”

NVDA is up about 13% since October 1 and up nearly 36% from its September low of $100.95, so it only needs to gain about 50% to reach a $5 trillion market cap. That’s not a big stretch for a company with its next two quarterly earnings reports set to dropkick and drive the stock higher.

The bottom line: Even though NVDA has gained roughly 172%, it has a lot more room to run.

Finding the Next NVIDIA

Now, I recommended NVIDIA back in May 2019 when AI was first emerging on the scene. Since then, it’s up nearly 3,168%! Those are the kinds of gains that most investors are lucky enough to see once in a lifetime.

NVDA is one of my favorite stocks and I plan to hold it for several more years. However, the next wave of the AI Boom is coming, and we could see big moves in another kind of AI stock: the “next generation” of AI stocks that will take the AI Boom to an entirely new level. These are the companies that will use generative AI or reinvent or automate some of the oldest business models around.

But don’t just take my word for it. Jensen Huang said it himself during the same interview I mentioned above. He stated, “What we are looking at now is the beginning of the next wave of AI. The biggest wave of AI.”

That’s why I’m focused on finding the next NVIDIA that will pop during this AI Boom.

In fact, I’ve found a way to potentially double your money six different times – without putting a penny into any of the popular AI stocks like NVDA.

So, I recorded an urgent briefing to share how you can profit from what is coming. But there are less than 48 hours left to watch this briefing, so I strongly encourage you to view it before it’s taken down.

Click here to learn more about the Real AI Boom now.

Sincerely,

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Microsoft Corp. (MSFT) and NVIDIA Corporation (NVDA)