Should You Buy Nvidia Before 2025? The Evidence Is Piling Up, and It Says This.

Now let’s consider whether you should buy this high-flying stock before the new year. One reason you may hesitate is the fact that, during the launch period, Nvidia’s margins may remain strong, but the company still will go through a time of transition. Nvidia said getting the launch just right will weigh somewhat on gross margin, bringing it down to the low-70% range from the mid-70s. This, along with the fact that Nvidia surged in 2024, may prompt investors to turn to other stocks with more potential for explosive growth right away.

That said, even after Nvidia’s impressive earnings and share price performance in recent quarters, the company may be in the early days of its growth story. As I mentioned earlier, the entire AI market is set to take off over the coming years. And Nvidia chief Jensen Huang has emphasized many times that over the coming four or five years, about $1 trillion must be spent to upgrade data centers as part of this shift to accelerated computing.

Meanwhile, Nvidia’s upcoming Blackwell launch along with future chips — that it’s pledged to update annually — should help fuel these developments. And that means a whole new era of growth might be just ahead.

Considering this, the evidence that’s piling up shows us it’s a great idea to get in on Nvidia as soon as possible — to benefit from this new wave of growth that’s starting as early as this current quarter. Nvidia predicts it will beat its forecast of several billion dollars of Blackwell revenue in the period.

Of course, even a purchase of Nvidia after the new year clearly could deliver rewards down the road. Stock performance over the short term generally won’t have much of an impact if you hold on for the long term — and that’s the best way to invest. So, you don’t absolutely have to rush out and buy Nvidia stock right now to avoid missing out. But, if you happen to be shopping for stocks before the end of 2025, evidence suggests Nvidia is a fantastic one to add to your list.

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $872,947!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of December 9, 2024

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Should You Buy Nvidia Before 2025? The Evidence Is Piling Up, and It Says This. was originally published by The Motley Fool