Is Nvidia Stock a Buy Now?

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Nvidia shares are trading at record highs. Is the leading AI stock a buy, sell, or hold at these lofty prices?


Chip designer Nvidia (NVDA -0.79%) looks virtually unstoppable right about now.


The company crushed Wall Street's expectations and management's guidance targets in last week's first-quarter report. A global thirst for artificial intelligence (AI) systems, and particularly for semi-creative generative AI platforms, drove Nvidia's results through the ceiling again.


As a result, the stock soared to fresh all-time highs. With a market capitalization of $2.85 trillion, only Microsoft (MSFT 0.11%) and Apple (AAPL 0.50%) can claim a larger market value nowadays.

Given Nvidia's impressive performance and rich valuation, it's only fair to ask whether the stock can soar any higher from this lofty point. Is Nvidia still a great buy, or is it high time to lock in your Nvidia gains with a quick sell?


A bull case for Nvidia

The company has many things going for it. Covering all of Nvidia's proven or potential growth catalysts would take a book, but let's scratch the surface:




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Is Nvidia Stock a Buy Now?

By Anders Bylund – Jun 2, 2024 at 7:51AM

KEY POINTS

Nvidia's AI-driven revenue soared in fiscal Q1 2025, boosting top-line growth by 262% year over year.

The stock recently hit all-time highs, with a market capitalization of $2.85 trillion.

Investors should consider waiting for a price correction before buying more.

10 stocks we like better than Nvidia

Nvidia shares are trading at record highs. Is the leading AI stock a buy, sell, or hold at these lofty prices?


Chip designer Nvidia (NVDA -0.79%) looks virtually unstoppable right about now.


The company crushed Wall Street's expectations and management's guidance targets in last week's first-quarter report. A global thirst for artificial intelligence (AI) systems, and particularly for semi-creative generative AI platforms, drove Nvidia's results through the ceiling again.

As a result, the stock soared to fresh all-time highs. With a market capitalization of $2.85 trillion, only Microsoft (MSFT 0.11%) and Apple (AAPL 0.50%) can claim a larger market value nowadays.


Given Nvidia's impressive performance and rich valuation, it's only fair to ask whether the stock can soar any higher from this lofty point. Is Nvidia still a great buy, or is it high time to lock in your Nvidia gains with a quick sell?


A bull case for Nvidia

The company has many things going for it. Covering all of Nvidia's proven or potential growth catalysts would take a book, but let's scratch the surface:


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Nvidia is making money hand over fist. Top-line revenue jumped 262% year over year in the first quarter, driving adjusted earnings 461% higher. Free cash flow exploded 479% higher.

The company's manufacturing partners, led by Taiwan Semiconductor Manufacturing (TSM -1.25%) and Samsung (SSNL.F -28.74%), don't have unlimited production capacities. Heavy demand for Nvidia's current lineup of AI accelerator chips has created a backlog of unfilled orders and product delivery wait times of roughly four months. That's down from 11 months in the fall of 2023, partly thanks to export restrictions into China. Still, the supply and-demand equation remains heavily unbalanced in favor of strong demand and limited supply.

The generative AI rush is still in its early days. Systems will grow more powerful for many years, requiring a steady flow of increasingly capable number-crunching chips. In other words, Nvidia's game-changing AI revenue streams won't run dry anytime soon.

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