Teflon-like stock Nvidia (NVDA) may be taking some hits as the year winds down, but a new chapter awaits the AI market’s 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,” Ross Gerber, president of Gerber Kawasaki Wealth and Investment Management, said on Yahoo Finance’s Catalysts (video above), later adding: “the opportunity for AI is something unlimited at the moment.” “.
Gerber, who has been an investor in Nvidia for the past decade after it rose to popularity for its high-performance gaming chips, believes the company is entering its “next stage” of growth.
Growth will be driven by the rapid global development of artificial intelligence infrastructure, driven in large part by Nvidia’s cutting-edge chips.
“Nvidia is not a very expensive stock, but it’s not a cheap stock either,” Gerber said. “But the real profits they are generating and their monopoly position in the chip business make the next five years look really good for Nvidia.”
“I certainly wouldn’t quit now,” he added. “So for investors, Nvidia needs to be as much a part of their portfolio as Apple and Microsoft.”
The enthusiasm for what lies ahead for Nvidia is reflected in the inflows from retail investors.
Nvidia has attracted $30 billion in inflows from retail investors 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.
However, some traders have chosen to abandon Nvidia’s rocket this month.
Shares of the new component of the Dow Jones Industrial Average have risen just 0.7% over the past month. The Dow Jones is down 10% in the last month, while the S&P 500 has lost about 1.7%.
Nvidia shares are still up 181% so far this year.
The stock is facing a moment of soul-searching, according to Vivek Arya, a semiconductor analyst at Bank of America. This is related to several factors, including execution issues in trying to drive leading innovations and concerns about China’s exposure ahead of potential tariffs from President Trump.
“Some of these [issues] “They are company-specific forces,” Arya said on Yahoo Finance’s Opening Bid podcast (listen below), “and some of them are market forces.”
The move to Nvidia’s Blackwell AI chip, which won Yahoo Finance’s 2024 Product of the Year award, hasn’t been perfect, Arya explained, and this has made bulls nervous.