Nvidia Soars Today Thanks to AI News — Is It Time to Buy the Stock?

Nvidia (NASDAQ: NVDA) Shares posted big gains in trading on Wednesday. The artificial intelligence (AI) leader’s share price ended the daily session up 8%, according to data from S&P Global Market Intelligence.

Nvidia shares gained ground on a Semafor report that the US was considering lifting restrictions on the sale of advanced semiconductors to Saudi Arabia. If so, it would open up a new market for the AI ​​company.

Nvidia’s valuation also received a significant boost thanks to comments made in a presentation by CEO Jensen Huang. Speaking at the Communacopia and Technology Conference hosted by Goldman SachsHuang said his company continues to see incredible levels of demand.

He also issued encouraging guidance for Blackwell, the company’s next-generation processors. Huang said that Blackwell’s production has already increased, the chips are set to start shipping to customers in significant numbers in Q4, and customer demand is very high.

The Nvidia CEO also said that his company approaches its designs with manufacturing versatility in mind. The company is currently based on Taiwan Semiconductor Manufacturing to manufacture its chip designs, but says it is taking steps to ensure it can move to other factories if necessary.

Is Nvidia stock a buy right now?

Following some recent stock volatility, Jensen Huang had plenty of reassuring news for Nvidia investors today. The report on Nvidia chips that could be sold in Saudi Arabia also highlights untapped growth opportunities among government customers.

Nvidia delivered stellar sales and earnings growth that drove incredible stock price gains, but that also raised questions among investors about how long the momentum can be sustained. Today’s favorable news helped ease concerns and led to big gains for the stock, and I think Nvidia still offers attractive upside at current prices.

The company continues to have a clear lead in the advanced graphics processing unit (GPU) space, and the long-term demand outlook for its GPUs and emerging technology and service offerings remains very favorable. The recent volatility for the stock highlights that expectations are very high, but the company looks poised to deliver another big leap forward in processing with its Blackwell chips — and could lay the groundwork for long-term dominance in the AI ​​space.

Should you invest $1,000 in Nvidia right now?

Before buying Nvidia stock, consider the following:

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Nvidia. The Motley Fool has a disclosure policy.

Nvidia Soars Today Thanks to AI News — Is It Time to Buy the Stock? was originally published by The Motley Fool