Nvidia Stock: The Best Long-Term Bet on AI Growth

Nvidia Stock- Should You Buy Nvidia Stock Before December 3?

Nvidia Stock– Nvidia (NASDAQ: NVDA) has been on an impressive upward trajectory in recent years, and 2024 is no exception. With the stock heading for a gain of over 185% this year, it’s clear that the company’s dominance in the AI market has fueled its remarkable growth. Nvidia has positioned itself as a leader in the artificial intelligence (AI) sector, and its chips, particularly graphics processing units (GPUs), are at the core of the AI revolution.

However, Nvidia’s success isn’t just about its hardware; the company has also developed a comprehensive suite of AI products and services that cater to a wide array of industries. In this article, we’ll dive into why Nvidia is one of the best long-term investments in AI and whether now is the right time to buy ahead of its upcoming Dec. 3 presentation at the UBS Global Technology and AI Conference.

Nvidia’s Dominance in the AI Chip Market

At the heart of Nvidia’s success is its cutting-edge technology, particularly its GPUs, which power much of the artificial intelligence infrastructure today. Nvidia currently holds an overwhelming 80% market share in the AI chip sector, positioning it as the go-to supplier for businesses looking to harness AI for their operations. As noted, Nvidia’s GPUs are the fastest around, making them the ideal engine for AI projects and are critical for tech companies racing to win the AI arms race. These companies are working hard to create the best AI platforms or use AI to develop groundbreaking products, and they rely heavily on Nvidia’s high-performance GPUs to do so.

The reason for this dominance is simple: Nvidia’s GPUs are designed to handle parallel processing, allowing them to efficiently run multiple AI tasks simultaneously. Nvidia has also committed to annually upgrading its GPUs, ensuring that its products stay at the cutting edge of AI technology. This dedication to innovation has helped Nvidia maintain its leadership position in an increasingly competitive market.

Demand for Nvidia’s products is so high that even industry giants like Larry Ellison of Oracle and Elon Musk of Tesla have reportedly begged the company for more GPUs, according to reports. As AI demand continues to surge, Nvidia is well-positioned to meet that demand, although its GPUs are in such high demand that supply has struggled to keep up with orders, as noted by Yahoo Finance. This suggests that Nvidia is not only in a strong position but also that its future growth looks incredibly promising.

The Upcoming Blackwell Chip Launch and What It Means for Nvidia

One of the key catalysts for Nvidia in the near term is the release of its Blackwell architecture and chip. As the company’s next-generation product, the Blackwell GPU is expected to push Nvidia’s market share even higher, given its ability to handle even more complex AI workloads. The launch is already underway, with Nvidia having delivered 13,000 chip samples to key customers in the third quarter of 2024. The company is ramping up production, and we can expect Blackwell’s availability to increase significantly in the coming weeks.

Investors are eagerly watching this development, as the Blackwell launch could provide further momentum for Nvidia’s stock. The company’s recent earnings report highlighted the importance of Blackwell, and as The Motley Fool mentioned, investors are heavily focused on the upcoming release of the Blackwell architecture and chip. With Nvidia’s strong track record of delivering high-performance chips, there’s little doubt that Blackwell will be another winner for the company.

However, Nvidia’s upcoming presentation at the UBS Global Technology and AI Conference on December 3 could also provide additional insights into the company’s future growth. While it’s unlikely that Nvidia will make any major announcements at the event, there’s always the potential for updates that could further elevate investor confidence in the company. For instance, if Nvidia highlights that demand for Blackwell is even stronger than expected, it could drive a spike in stock price, providing short-term gains for those who are already invested.