Nvidia (NVDA 0.01%)) I have skyrocketed in the past two years, but in recent weeks, he has offered investors a new purchasing opportunity that some may never have thought possible. After all, the revenues of the artificial flea giant (AI) have climbed, and the AI market should reach the thousands of billions by the end of the decade. And all of this should support more gains for Nvidia’s action.
But the general concerns about the economy, stimulated by President Trump’s plan to impose prices on imports, weighed on NVIDIA – and on the global stock market. Investors were also concerned about export restrictions which recently interrupted flea sales by Nvidia to China. Consequently, the NVIDIA action has dropped up to 29% since the start of the year thanks to its lowest point last month. He has since started to bounce back but remains at a very reasonable price compared to the estimates of long -term profits.
Now investors wonder how long it could stay at this price – especially with a large potential catalyst to come on May 28. I am talking about the report on the quarterly benefits of Nvidia, a moment that generally offers us important updates and an overview of what awaits us for this engine and this shaker. This is particularly important these days, because concerns remain concerning the impact of potential rates on electronics and the future of flea exports.
Should you buy Nvidia before this key date? Discover.
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NVIDIA sales and profit
It is important to note that Nvidia has attracted the quarter of investors after the quarter with its growth in profits and updates and product plans. The company has declared a double or triple figure income growth and that revenues have each reached new files. At the same time, the profitability of sales was fantastic, the gross margin being constantly greater than 70%. And even during the expensive time of a product launch – I’m talking about the recent version of the architecture and the Blackwell – Nvidia chip managed to maintain the gross margin above this level.
Meanwhile, the company walks forward by focusing on innovation, describing its plans to publish updates to the chip and / or complete architecture on an annual basis. Blackwell Ultra will arrive in the second half of this year, followed by the Vera Rubin architecture in the second half of next year. This should keep Nvidia in its leadership position on the AI market.
Finally, in recent weeks, Nvidia has demonstrated its ability to manage challenges such as prices or export restrictions to China. For example, to minimize the impact of potential prices on electronic products, NVIDIA has announced a major investment in manufacturing in the United States.
Proactive and ingenious
As for the Chinese situation, Nvidia seeks to build a research and development center in Shanghai, according to a Financial time report. The idea would be to develop conceptions to meet the needs of Chinese customers while respecting the strict requirements of American export controls, according to the newspaper. Thus, Nvidia is proactive and ingenious in the face of challenges.
Now what should you expect on May 28? NVIDIA has a long period to beat analysts’ expectations, and in the recent report on the results, the launch of Blackwell was solid – the product generating $ 11 billion in income during its first quarter on the market. Investors already know that NVIDIA will win 5.5 billion dollars after the United States has restricted exports to China – so that the specific element should not disrupt the feeling.
However, despite NVIDIA’s measures to manage export and price problems, these risks remain and could weigh on stock performance at any time. And any setback in the process of the tariff agreement between the United States and China or the United States and other countries as well as all lower than expected economic data represent potential-contrary winds for stock. NVIDIA strongly depends on the financial health of other major technology giants and their ability to spend in AI infrastructure.
NVIDIA assessment
Given all of this, should you buy Nvidia before May 28? Nvidia is negotiating 30 times of long -term profits estimates, higher than it was a few weeks ago. But it is still much lower than its summit last year and this year, which makes it very reasonable today.
NVDA PE Ratio (Forward) Data by ycharts
It is possible that the positive news on profits raise stock and evaluation, but I would not expect a dramatic decision of the evaluation which would immediately push it in an overvalued territory. And although the potential risks for short -term growth exist, as mentioned, in my opinion, the long -term positive prospects of Nvidia are much stronger.
Thus, Nvidia is a purchase, but you are moving today or after May 28, it will not make a huge difference for your possible yields – if you invest in the long term. Indeed, this hot stock can become even warmer because the history of AI enters its next chapters, which means that even if it stagnates or falls to a certain point, over time, the Nvidia stock could offer your wallet a significant boost.
