Core Insights - Nvidia has been a leading AI stock since 2023, with significant returns in 2023 and 2024, although 2025 has seen a slower growth of approximately 35% so far [1][2] Domestic Market Dynamics - Nvidia's graphics processing units (GPUs) are essential for complex tasks, and the company holds a dominant market share in the data center sector, estimated at 90% or greater [4] - The data center market is experiencing growth driven by demand from AI hyperscalers like Meta Platforms and Alphabet, with expectations of increased capital expenditure focused on data center expansion [5] International Market Opportunities - Nvidia's export license for H20 chips was revoked in April, resulting in a loss of $2.5 billion in revenue for Q1, and the company had to withdraw revenue guidance for Q2 [7][8] - The potential approval of Nvidia's export license to China could lead to significant growth, despite a 15% export tax that may impact profit margins [9] Future Outlook - Nvidia's management projects a 50% revenue growth to $45 billion for Q2, which could have been 77% growth to $53 billion if H20 sales were included [8] - The company is well-positioned to benefit from increased business in China, which could positively impact its performance in the latter half of the quarter [10] - With two positive growth catalysts and no apparent negatives, Nvidia may guide for revenue reacceleration, potentially leading to a surge in stock prices [11] Investment Considerations - Current stock valuation is lower than the previous year, presenting a long-term investment opportunity, with expectations of maintaining its status as a top stock to buy [13]
1 Unstoppable Artificial Intelligence (AI) Stock to Buy Before Aug. 27