Is it too late to buy Nvidia shares? Here’s what this investor thinks

Regardless of the overall market changes from the beginning of 2023, except for short periods, you can rest assured Nvidia (NASDAQ:NVDA) stocks were gaining. The stock’s success was completely in sync with the company’s performance, meaning profits were based on tangible results rather than media hype.

Nvidia’s impressive earnings reports continue to exceed expectations, increasing both revenue and profits. Each report not only promises future growth, but also delivers on those promises, creating a virtuous cycle of investor confidence and continued market interest.

This trend continued in the latest fiscal first quarter report, where Nvidia once again exceeded expectations. Combined with the optimistic outlook and the announcement of a 10-to-1 stock split, the company’s stock has surged 39% since the report was released.

According to investor Juxtaposed Ideas, the advantage is that the business is so strong that there is something to look forward to. “With generative AI driving strong sales across both the infrastructure and SaaS layers, Nvidia remains well-positioned to generate profitable growth and maintain leading market share,” the investor said.

We are currently at the beginning of the AI ​​boom, and the initial explosion is now being positively felt in the “SaaS layer”, with other companies also enjoying the spoils. Meanwhile, Nvidia has completely cornered the AI ​​chip market with a 95% share, and Juxtaposed believes the company remains “well-positioned to maintain its AI leadership and solid financial performance and earnings.”

On the other hand, given the huge share increase (already 166% since the beginning of the year), there are some issues to consider. “Potential redundancy/bullwhip effect, expensive ASP/intense development of internal AI chips, and more difficult year-over-year comparisons could lead to a short-term correction,” Juxtaposed says.

So what should investors do now? Compiled thoughts for those looking to settle in and gain strength, given that the market may be too lively and there is a possibility that Nvidia will have a difficult y/y comp ahead, “it may be wiser to wait for a moderate pullback before adding.”

“However,” the investor adds, “we do not believe in market timing for Nvidia Corporation given the solid growth prospects that warrant Buy and Hold status in any growth-minded investor’s portfolio.”

To this end, Juxtaposed Ideas puts NVDA stock on sale. (To view Juxtaposed Ideas’ achievements, click here)

This is also the most common view of the Wall Street analyst community. Based on 37 buys and 3 holds, the company’s shares received a Strong Buy consensus rating. That said, somewhat paradoxically, the $126.32 average target includes a year-to-date decline of 4%, indicating that most analysts also believe this winning stock deserves a rest. (See Nvidia stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended for informational purposes only. It is very important to do your own research before making any investment.