Nvidia (NVDA 1.02%) has proven itself to be a solid long-term investment, with its stock soaring 1,800% over the past five years. This is thanks to the company's dominance in one of today's highest-growth areas: artificial intelligence (AI). From about $200 billion right now, this market is forecast to reach beyond $1 trillion by the end of the decade.
And Nvidia, due to its leadership, already is reaping the rewards. The company has reported quarter after quarter of double- and triple-digit earnings growth, and in the most recent period, the momentum continued. Nvidia delivered quarterly and full-year revenue increases to record levels -- $39 billion in the quarter and $130 billion for the year. In even better news, an enormous amount of growth may be ahead as the company is set to benefit from the ongoing AI infrastructure buildout as well as the next phases of AI growth -- such as the extended application of the technology to real-world problems.
So, you probably won't be surprised when I say Nvidia is a fantastic stock to own. But when exactly should you get in on this player? You could make the move right away, or you could wait until March 18, a day that may represent a big catalyst for the stock.
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Why Nvidia deserves a spot in your portfolio
First, let's take a look at why Nvidia could make a great addition to your portfolio. Nvidia has established a solid earnings track record, and this growth should continue thanks to the company's leadership and innovation in AI. Nvidia makes the world's fastest AI chips -- known as graphics processing units (GPUs) -- and sells a wide selection of other related products and services. Basically, new or seasoned AI customers can find just about everything they need at Nvidia.
Innovation is a particularly important point because it's the element that may keep Nvidia ahead of rivals in this fast-paced market. In Nvidia's recent earnings call, it spoke about the successful rollout of its new Blackwell architecture -- a product that brought in $11 billion in its first full quarter on the market. And Nvidia said it's on track to keep its promise of innovation on an annual basis, with Blackwell Ultra set for launch in the second half of the year, and then the Rubin architecture to follow.
All of this means Nvidia is well positioned to benefit from the ongoing AI infrastructure buildout and the next stages of AI growth. And this makes the stock a no-brainer buy for any investor aiming to bet on the AI revolution. But some investors might be thinking it's wise to wait a couple of weeks.
NASDAQ: NVDA
Key Data Points
Blackwell, Rubin, and more
On March 18, we may learn even more about Nvidia's role in the development of AI as CEO Jensen Huang will be delivering the keynote at the company's annual GTC AI conference.
"Come to GTC, and I'll talk to you about Blackwell Ultra, Vera Rubin and then show you what we place after that," Huang said during Nvidia's earnings call this week, suggesting the event may bring exciting details about what's next for the company.
GTC will unfold over five days and feature exhibits, panels, and even a quantum computing day -- a first for the event. Huang's keynote address is scheduled from 10 a.m. to noon PT on March 18.
Recent history shows us that Nvidia's stock hasn't necessarily soared in the weeks following its earnings reports -- even though these reports have been strong. For example, in the month following the last two earnings reports, the stock declined. If Nvidia stagnates or falls over the coming days, you may buy the stock at a lower price just ahead of GTC or as it kicks off than if you rush to get in on it now. Of course, history isn't always right, and that means Nvidia also could soar in the coming days, meaning you could end up paying more for the stock if you wait.
Take the pressure off and focus on the long term
So, what's the best decision? It's important to take the pressure off yourself and remember that short-term performance won't impact your overall performance if you hold onto a stock for the long term. Earlier, I mentioned Nvidia's quadruple-digit gain over the past five years -- an increase or decrease over any given few weeks during that time wouldn't have changed an investor's returns at the end of the period by very much.
All of this means it doesn't really matter whether you buy shares of Nvidia today, right before Huang's keynote on March 18, or even after the conference. Over the long term, you're likely to see the same result, and in this case, that result could be very positive. That said, Nvidia looks particularly cheap as I write this, trading at about 29 times forward earnings estimates, so if you have the cash available to invest, now is a great moment to get in on this top AI stock.
