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It still makes a lot of sense to own momentum stock darling Nvidia ( NVDA ).
“If you don’t have Nvidia, you’re literally missing out on a revolution,” Ross Gerber, co-founder of Gerber Kawasaki Wealth & Investment Management, told Yahoo Finance executive editor Brian Sozzi on the Opening Bid podcast (watch the video above; listen here).
Gerber believes that those who are not investing in Nvidia can be compared to those who “did not invest in Napoleon during the French Revolution.”
Gerber says his company has held Nvidia stock for more than a decade.
Initially, Nvidia's strong position in gaming chips was the center of attention. But as Nvidia focused on autonomous car chips and powerful AI chips, Gerber has been grabbing more and more shares of the Jensen Huang-led tech company.
“This is the best investment we’ve ever made,” Gerber said.
The firm's long-term bullishness appears to have paid off handsomely. Recently, the shares have rebounded considerably.
Nvidia's stock has surged more than 2,900% over the past five years, thanks to one stellar quarter after another as it regained a leadership position in cutting-edge chips. The company's strong results continued in its first fiscal quarter, with sales rising 18% year over year to $26 billion. Non-GAAP earnings surged 461% over the past year.
When Nvidia announced its second quarter results on Wednesday afternoon, the market was expecting similar results. Revenue and earnings are expected to increase by 113% and 156%, respectively.
Gerber isn't alone in being optimistic about Nvidia.
During the Opening Bid podcast in June, EMJ Capital founder Eric Jackson told Sozzi that he believed the company could reach a market capitalization of $6 trillion, roughly double its then-$3.25 trillion market capitalization.
Nvidia's current market capitalization is approximately $3.18 trillion.
Goldman Sachs analyst Toshiya Hari recently reiterated a buy rating on Nvidia ahead of earnings.
Concerns such as delays in the next-generation Blackwell GPU architecture are potential short-term concerns, Hari said in a note to clients.
“Overall, we expect management's commentary coupled with supply chain data points in the coming weeks to instill greater confidence related to Nvidia's earnings power in calendar 2025,” Hari wrote in a note.
Hari noted that key customers including Alphabet (GOOG, GOOGL) and Meta (META) have revealed plans to increase capital spending, and Microsoft (MSFT) and Amazon (AMZN) are allocating capital spending growth to AI and cloud products.
“Intra-quarterly data points continued to indicate a strong demand environment,” Hari wrote.
Last week, Nvidia's rival AMD (AMD) announced its $4.9 billion acquisition of server equipment maker ZT Systems. For Nvidia veterans, the deal highlights just how far the company has fallen behind worthy competitors like Lisa Su-led AMD.
“We are long-term investors,” Gerber said. “I think Nvidia should definitely be a core holding, along with Microsoft.”
Three times a week, Executive Editor of Yahoo Finance Brian Sozzi Provides an opportunity for insightful conversations and chats with the biggest names in business and markets Initial bid. You can find more episodes here Video Hub or look at your Favorite Streaming Service,
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