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Owning momentum stock darling Nvidia (NVDA) still makes a lot of sense.
“If you don’t own Nvidia, you’re literally missing out on a revolution,” Ross Gerber, co-founder of Gerber Kawasaki Wealth and Investment Management, told Yahoo Finance editor-in-chief Brian Sozzi on the Opening Bid podcast (watch the video above and listen to the audio below).
Gerber said people who don’t invest in Nvidia are comparable to people “not investing in Napoleon during the French Revolution.”
Gerber said his company has held Nvidia shares for more than 10 years.
Initially, Nvidia was attractive because of its strong position in gaming chips, but as the company has shifted its focus to self-driving car chips and powerful AI chips, Gerber has been buying more shares in the Jensen Huang-led tech company.
“This has been the best investment we’ve ever made,” Gerber added.
The company’s long-term bullish stance appears to have paid off handsomely: The stock has soared recently and has plenty of upside potential.
NVIDIA shares have soared more than 2,900% over the past five years as the company has established itself as a leader in cutting-edge chips and delivered impressive quarter after quarter. The company’s strong performance continued in the first quarter, when revenue grew 18% year over year to $26 billion. Non-GAAP earnings increased 461% year over year.
The market is expecting similar results when Nvidia reports its highly-anticipated second-quarter results on Wednesday afternoon, with revenue and profits expected to rise 113% and 156%, respectively.
Gerber isn’t the only one optimistic about Nvidia.
During a June appearance on the podcast “The Opening Bid,” EMJ Capital founder Eric Jackson told Sozzi that the firm’s market capitalization could nearly double to $6 trillion from $3.25 trillion at the time.
Nvidia’s current market capitalization is approximately $3.18 trillion.
Goldman Sachs analyst Toshiya Hari recently reiterated his buy recommendation on Nvidia ahead of the company’s earnings release.
Hari wrote in a client note that concerns such as delays to the next-generation Blackwell GPU architecture could be a short-term issue.
“Overall, we expect management commentary combined with supply chain data points over the coming weeks to increase our confidence in Nvidia’s earnings power in 2025,” Hari wrote.
Hari noted that major clients like Alphabet (GOOG, GOOGL) and Meta (META) have announced plans to increase capital spending, while Microsoft (MSFT) and Amazon (AMZN) are allocating increased capital spending to AI and cloud products.
The story continues
“Intraquarter data continues to point to a robust demand environment,” Hari wrote.
Last week, NVIDIA rival AMD (AMD) announced it was buying server equipment maker ZT Systems for $4.9 billion. For NVIDIA bulls, the deal underscored how the company is outperforming powerful rivals like Lisa Su’s AMD.
“We’re long-term investors,” Gerber said. “We think Nvidia should definitely be a core holding alongside Microsoft.”
Three times each week, Yahoo Finance Editor-in-Chief Brian Sozzi hosts insightful conversations and chats with luminaries from business and markets on Opening Bid. Additional episodes are available to watch on our video hub or on your favorite streaming service.
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