Is Now the Time to Buy Nvidia Stock?

In this video clip from "Semiconductor Revolution" on Motley Fool Live, recorded on March 3, Motley Fool contributors Jose Najarro and Nicholas Rossolillo discuss why they're cautiously bullish on Nvidia (NVDA -0.29%), and how they think investors should allocate the stock in their portfolios.

Jose Najarro: I am a big bull in Nvidia. Big bull, one of my top positions. But at the same time, I do believe in the short term, it's what I call priced to perfection. What this means if there's any form of slip-up in either revenue not meeting expectations, some form of slip-up in supply chains, I do think the stock price can take a heavier hit than most other companies because of that price to perfection. At the same time, I feel like maybe it might be expensive in the short term of things, maybe in the next 12 maybe 16 months. But looking out in a five-year timeframe, I wouldn't mind buying Nvidia at these levels. I guess to me it all depends on the timeframe and if you're willing to withstand that risk of high volatility for the stock. I consider myself the worst timer in investor, so me buying now I always think that in the next few months I'm going to have a cheaper price and a better price point to enter into. Any additions from Nick?

Nicholas Rossolillo: Yeah. I've had Nvidia a long time, and I got really aggressive buying more of it in 2018 when no one wanted to touch it. In fact there are people over the internet talking about the death of Nvidia because of the crypto market and they had totally screwed up their projections on how many of their GPUs were going to crypto miners. The problem I see right now is nobody thinks that. Everybody and their grandmother thinks the opposite. Nvidia can do no wrong and that makes me nervous so I'll, I guess, just say the same thing you did Jose, buy it but be very conservative and if you want it to be 2%, 3%, 5% of your portfolio, split it up each month or each quarter, just buy a little bit at a time and maybe spread out the purchase over the course of a year or something. Just because I always just get nervous when everybody is so bullish. When everyone thinks the company is a buy, that makes me a little nervous. But it's a fantastic company. I own it for the indefinite future.