To The Moon

🌟🌟🌟Nvidia's share price is sizzling hot.  Can it continue to rise? Nvidia is up 10.9% in the past 5 days and has skyrocketed 180% year todate.  In 2023 Nvidia has jumped a whopping 219%.

$NVIDIA Corp(NVDA)$   is the best performing stock of the Magnificent 7.  Nvidia rose on Wednesday, approaching the record high set in June due to its strong position in AI.  The AI powered meteoric rise has sent Nvidia into the USD 3 Trillion market capitalisation club.  It went from USD 2 Trillion to USD 3 Trillion in just 96 days.  This achievement was done in record time compared to $Microsoft(MSFT)$  and $Apple(AAPL)$ 

In contrast Microsoft reached the USD 1 Trillion level in April 2019 and another 543 days to reach USD 2 Trillion.  It finally reached USD 3 Trillion in market cap in January 2024 after another 650 days.

In the case of Apple, it was the first USD 3 Trillion company.  In 2018, Apple reached USD 1 Trillion and another 2 years to reach USD 2 Trillion in 2020.  Getting to the USD 3 Trillion  mark took almost 3 years in June 2023.

Can Nvidia sustain this phenomenonal increase in its share price?

In May 2024, Nvidia reported record revenue of USD 26.04 billion for its fiscal 2025 first quarter.  This is more than triple what it was in the year ago period.  Earnings per share was USD 5.98  compared to 82 cents. 

The demand for Nvidia specialised AI chips has far exceeded its supply.   Another factor that could support growth is Nvidia 's shift to offering full stack solutions rather than simply chips as Nvidia did previously.

Nvidia' s upcoming Blackwell platform offers full stack solutions.  This supports the data centre needs required to train and run AI workloads.  Blackwell is already in high demand and is expected to drive Nvidia's growth.

Nvidia is not resting on its laurels.    The next generation Rubin platform is coming in 2026.  CEO Jensen Huang plans to keep releasing new AI chips at a steady pace - at least once each year. 

For now Nvidia is the number 1 AI Chip maker that companies like Microsoft, $Alphabet(GOOG)$ MetaBullish Meta Platforms buy from.  Its closest competitors $Advanced Micro Devices(AMD)$  and Intel still have much catching up to do before they can chip away market share from Nvidia.

Can Nvidia Sustain Its Rapid Share Price? 

I believe that is a resounding YES!  Nvidia is an extremely profitable company with solid fundamentals.  It has a wide moat among the AI companies too.

I have just started to invest in Nvidia last week and I feel so happy that it has risen by 9% in that time.  I intend to hold Nvidia long term and let the magic of compounding happen over time. 

As the late Charlie Munger likes to say - The Big Money is not in the Buying and Selling but in the Waiting!

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