Should You Buy Nvidia Before October 7th?

Investors have flocked to artificial intelligence (AI) stocks in recent years because of the technology’s promise to revolutionize everything from everyday life to how businesses are run. And we are only at the beginning of this great growth story. Today’s $200 billion market is projected to surpass $1 trillion by the end of the decade.

All of this has translated into double-digit gains this year for many companies supporting AI development — or developing AI themselves. At the head of the pack is Nvidia (NVDA 1.58%). The global AI chip leader has seen its share price rise about 135% so far this year. Nvidia’s graphics processing units (GPUs) are the fastest on the market, and customers have recognized that, helping push Nvidia’s revenue to triple-digit gains quarter after quarter.

It’s no surprise that Nvidia shareholders and potential investors are watching this company’s every move closely for clues about what’s next — and using them to make investment decisions. And now, they may be looking to Nvidia’s AI Summit starting Oct. 7 as a potential catalyst. Should you buy Nvidia stock before the event? Let’s find out.

Image source: Getty Images.

Nvidia AI Summit

First, some details about the summit. It takes place on-site in Washington DC as well as virtually from October 7th to October 9th. The event appears to be a popular one, as passes for the general conference are currently sold out — but limited quantities of exhibit-only passes are still sold out. available at the time of writing.

At the summit, I wouldn’t expect updates on Nvidia’s latest products or announcements of new products or services. Instead, this event is designed to show exactly how the company’s technology — and AI in general — is revolutionizing many industries. A variety of speakers, from Nvidia’s own VP of Enterprise Platforms, Bob Pette, to The Weather Company’s CEO, Sheri Bachstein, will talk about the latest AI developments.

While this event probably won’t give us news about Nvidia’s upcoming release of its new Blackwell architecture, for example, it will give investors some important information. And this is how AI is actually being used right now. Topics to be covered include cyber security, robotics, healthcare and more. Nvidia’s event will also include live demonstrations such as Earth-2, the company’s climate forecasting tool.

All of this is a big plus for Nvidia, as it shows that artificial intelligence is not just a technology of hopes and dreams, but is actually being used and generating major results in today’s industries. That should lead to continued revenue for Nvidia as it sells the tools and services needed to maintain that progress, and that’s positive news for Nvidia shareholders and potential shareholders.

Is this a catalyst for Nvidia stock?

Now, back to our question: Should you buy Nvidia stock before October 7? While the AI ​​Summit may put Nvidia in the spotlight next week, I don’t expect it to act as a catalyst for the stock’s performance. What generally drives stock performance is news of product launches, earnings reports or economic news that could affect the company — positively or negatively.

All of this means that it won’t make much difference whether you buy Nvidia stock today or after October 7, especially if you’re holding for the long term. Day-to-day fluctuations won’t change your overall return if you hang onto stocks for five or 10 years.

So the next question is: Whether you make the move now or in a few days, is Nvidia really a buy? After all, the stock has moved higher not just this year, but for some time. It gained 2,500% in five years.

While Nvidia stock, at 41 times forward earnings, isn’t the cheapest around, it’s worth the price given the company’s earnings history, strong market position and focus on innovation to keep it on top. Nvidia stock may not continue at the same unbroken pace — stocks don’t rise in a straight line forever — but Nvidia still has plenty of room to run for the long term. And that makes Nvidia a fantastic AI stock to buy today — or after next week’s AI summit.