Should You Buy Nvidia Now or Wait Until March 18?

Nvidia (NVDA 3.97%) has demonstrated its value as a long-term investment, with its stock price increasing by an impressive 1,800% over the last five years. This growth is largely attributed to the company's strong position in one of the fastest-growing sectors today: artificial intelligence (AI). Currently valued at approximately $200 billion, the AI market is projected to exceed $1 trillion by the end of the decade.

Nvidia is capitalizing on this potential, consistently reporting double- and triple-digit growth in earnings. In its latest financial results, Nvidia achieved record revenue figures, amounting to $39 billion for the quarter and $130 billion for the entire year. Even more promising is the substantial growth that lies ahead as the company is poised to benefit from ongoing investments in AI infrastructure and the further application of AI technology to real-world challenges.

Given these factors, it is easy to see why Nvidia is considered a strong stock to add to your investment portfolio. However, the question many investors face is when to make the purchase—should you buy now or wait until March 18, when a potentially significant event for the company is scheduled?

Why You Should Consider Investing in Nvidia

First, let’s explore why Nvidia could be a valuable addition to your portfolio. The company has a well-established track record of strong earnings growth, which is expected to continue due to its leadership and innovative developments in AI. Nvidia produces some of the fastest AI chips, known as graphics processing units (GPUs), and offers a comprehensive range of related products and services. Essentially, whether you are a new or existing AI customer, Nvidia has what you need.

Innovation is a critical aspect of Nvidia's success, allowing it to stay ahead of competitors in this rapidly changing market. During a recent earnings call, Nvidia announced the successful launch of its new Blackwell architecture, which garnered $11 billion in sales in its first quarter. Furthermore, the company plans to maintain its commitment to innovation by introducing the Blackwell Ultra later this year, followed by the Rubin architecture.

These advancements position Nvidia to exploit the ongoing development in AI infrastructure and the future phases of AI growth. This makes Nvidia an appealing choice for anyone looking to invest in the AI revolution. Nevertheless, some might consider waiting a few weeks before making their move.

Upcoming Developments on March 18

On March 18, Nvidia will likely reveal more about its contributions to AI during CEO Jensen Huang's keynote address at the annual GTC AI conference. Huang stated, "Come to GTC, and I'll talk to you about Blackwell Ultra, Vera Rubin and then show you what we place after that," indicating that exciting information about the company's future may be shared during the event.

The GTC conference will take place over five days and include exhibits, panels, and even a special day dedicated to quantum computing—a first for this particular event. Huang’s keynote is scheduled from 10 a.m. to noon PT on March 18.

Historically, Nvidia's stock has not shown a strong upward trend immediately following its earnings announcements, despite the positive news in those reports. For example, the stock saw declines in the month following its last two earnings results. Therefore, if Nvidia's stock price languishes in the coming days, waiting to purchase might allow investors to buy at a lower price just ahead of the GTC conference. However, it is also possible that the stock could rise, resulting in higher costs for those who wait.

Long-Term Focus Over Short-Term Decisions

Ultimately, what is the best strategy? It’s essential to relieve yourself of the pressure and remind yourself that short-term fluctuations typically do not significantly affect your overall performance if you are holding onto a stock for the long term. As previously mentioned, Nvidia has experienced massive gains over the last five years, and small increases or decreases in price over a couple of weeks would not drastically alter the returns from such a long holding period.

This indicates that it may not matter whether you buy Nvidia shares now, just before Huang's keynote on March 18, or after the event has concluded. Over the long term, you are likely to benefit, and in this case, the outcome could be very positive. Additionally, Nvidia appears relatively affordable at the moment, trading around 29 times forward earnings estimates, making this an opportune time to invest in this leading AI stock.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Nvidia, Investment, AI