Nvidia (NVDA 1.40%) stock has been a major winner for investors during the artificial intelligence (AI) boom. This AI chip leader saw its shares surge a mind-blowing 2,000% over the past five years. This is thanks to demand for the company's graphics processing units (GPUs) -- the chips powering key AI tasks like training and inferencing. But it's also due to Nvidia's expansion beyond the GPU to offer an entire portfolio of related products and services, making the company the go-to destination for anything AI.
In recent times, though, the stock, along with the general market, has been in the doldrums. This month, the Nasdaq and the S&P 500 entered correction territory, falling 10% from their most recent highs, as investors worried about the impact President Trump's tariffs on imports would have on the economy and corporate earnings. Nvidia has slipped about 12% over the past month.
But I don't think Nvidia will suffer for very long. In fact, I predict Nvidia stock will soar this year -- and the positive momentum may start after March 18. Let's find out more.
Image source: Getty Images.
Nvidia's record revenue
First, a quick summary of Nvidia's story so far. The company's dominance in the GPU market -- it holds 80% share -- and general AI strengths have led to double- and triple-digit revenue growth quarter after quarter in recent years. Last year, revenue surged 114% to more than $130 billion, a record level. And Nvidia has delivered high profitability on sales with gross margin topping 70% even during times of higher expenses, such as the recent launch of its Blackwell architecture.
Importantly, Nvidia's focus is on innovation, with a pledge to update its GPUs on an annual basis and the company is on the way to showing it can keep the promise. Nvidia just launched Blackwell in the recent quarter and aims to release Blackwell Ultra later this year -- then the Vera Rubin architecture is expected to follow just months after that.
Now, let's consider my prediction. I think that all of these elements will lift Nvidia shares this year, along with the idea that the long-term AI growth story hasn't changed. Even if the Trump administration's tariffs weigh on companies and the economy in the near term, this doesn't change the fact that the world is moving toward accelerated computing. Analysts expect today's $200 billion AI market to reach more than $1 trillion by the end of the decade, and Nvidia is perfectly positioned to benefit as it sells tools and services to address every phase of AI growth and use.
NASDAQ: NVDA
Key Data Points
Why will the stock rise now?
But why will this positive momentum begin now? Nvidia's annual GTC AI conference happens this week, and chief executive officer Jensen Huang will keynote on March 18. He's already offered us some clues about what he'll talk about:
"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 recent earnings call.
So, it's likely Huang will deliver key details about timing and performance of these upcoming products. This could reassure investors about the potential for Nvidia to keep growth going over the long term -- even through challenging times. On top of this, Nvidia stock has reached bargain levels, offering investors a fantastic entry point. Its recent decline left it trading for only 27x times forward earnings estimates, down from as much as 50 in January.
Of course, Nvidia stock may not take off immediately on March 18 or 19 and steadily roar higher for the rest of the year -- general economic and policy news could get in the way until some of the uncertainty lifts. But news Huang delivers during the conference may offer the stock a lift and get the ball rolling.
All of that means now is a great time for investors to look at Nvidia through a long-term lens and pick up shares of this top AI stock.
