Nvidia's (NVDA) Teflon-like stock it can be take a few swipes as the year draws to a close, but a new chapter awaits for the darling of the AI market – and more with it impressive quarters of growthexperts and investors believe.
“Nvidia is printing money like Apple did in the early days of the iPhone,” president of Wealth and Investment Management Gerber Kawasaki Ross Gerber he said on Yahoo Finance Catalysts (video above), later adding, “the opportunity for AI is somewhat limitless right now.”
Gerber, who has been an investor in Nvidia for the past decade after it rose to fame for its high-performance gaming chips, believes the company is entering its “next phase” of growth.
The growth will be fueled by rapid global developments of artificial intelligence infrastructure, largely powered by Nvidia's cutting-edge chips.
“Nvidia is not a very expensive stock, but it is not a cheap stock,” Gerber said. “But the real profits they're driving and their monopoly position in the chip business make the next five years look very good for Nvidia.”
“We certainly won't get off it now,” he added. “So for investors, Nvidia needs to be part of your portfolio just as much as Apple and Microsoft.”
The excitement about what lies ahead for Nvidia is being 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 (Spies), with $15.3 billion in inflows, and Tesla (TSLA), with $14.7 billion.
However, some traders have chosen to get off Nvidia's rocket ship this month.
Shares from the new Dow Jones Industrial Average component has increased by only 0.7% in the last month. The Dow is down 10% in the past 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 a Bank of America semiconductor analyst Vivek Arya. This is related to a number of factors, including implementation issues when trying to push through a leading innovation and concerns about China's exposure in front possible tariffs from the returning president Trump.
“Some of these (issues) are company-specific forces,” Arya he said on Yahoo Finance's Opening Bid podcast (listen below), “and some of these are market forces.”
The switch to Nvidia's Blackwell AI chip – which won Yahoo Finance 2024 Product of the Year reward – it hasn't been seamless, Arya explained, and this has caused the bulls uneasiness.