Should You Buy Nvidia Before May 28?

Core Viewpoint - Nvidia has experienced significant stock price fluctuations but presents a new buying opportunity as the AI market is projected to grow into the trillions by the end of the decade, supporting further gains for Nvidia's stock price [1]. Company Performance - Nvidia has consistently reported double- or triple-digit revenue growth, achieving record revenues each quarter, with gross margins consistently above 70% [6]. - The recent launch of the Blackwell architecture generated $11 billion in revenue during its first quarter on the market [10]. Innovation and Product Development - Nvidia plans to release annual updates for its chip and architecture, with the Blackwell Ultra expected in the second half of this year and the Vera Rubin architecture in the second half of next year, maintaining its leadership in the AI market [7]. Strategic Responses to Challenges - To mitigate the impact of potential tariffs, Nvidia announced a significant investment in U.S. manufacturing, aiming to produce AI supercomputers domestically, shifting from its current manufacturing base in Taiwan [8]. - Nvidia is also planning to establish a research and development center in Shanghai to cater to Chinese customers while adhering to U.S. export controls [9]. Market Outlook - Nvidia is currently trading at 30 times forward earnings estimates, which is lower than its peak valuations from the previous year, indicating a reasonable price point for investors [12]. - Despite potential risks from tariffs and export restrictions, Nvidia's long-term prospects remain strong, suggesting that the stock could provide significant returns over time [14][15].