Want to Snag a 30X Gain With Nvidia?

Want to Snag a 30X Gain With Nvidia?

Louis Navellier, Senior Investment Analyst, InvestorPlace

If you could make a better than 1,000% gain in a stock, would you invest in it?

Virtually every investor would answer that question with a resounding “Yes!”

But holding a stock long enough to get that big of a return is much easier said than done. The reality is that a stock never moves straight up. To walk away with a 1,000%-plus profit, you have to endure swings in stock prices, sometimes so severe that they’ll have you reaching for your antacids.

Case in point: Nvidia Corp. (NVDA).

In my 47 years on Wall Street, Nvidia is my biggest winner – up more than 3,000% since I recommended it back in May 2019.

In today’s note, I want to remind you of Nvidia’s somewhat obscure origins (unless you’re a gamer)… and how a surprising twist in how its technology worked brought it to my attention.

That’s an interesting story.

A more crucial story is what exactly hit Nvidia’s share price earlier this year… and where its next leg up will come from. So, we’ll take a look at that, too.

That said, while I still think it has plenty of room to run, the next chapter of the AI story won’t be written by Nvidia.

So, I’ll also start digging into where the next wave of AI profits is coming from. Nvidia’s CEO says it’s a $100 trillion opportunity.

And I’ve identified seven fast-rising ways to play it already.

Why I Recommended Nvidia

Nvidia is a leading computer graphics company that makes graphics processing units (GPUs).

Originally, graphics were only prized by video game enthusiasts. But it turns out that GPUs have a wide range of powerful applications. They can be used to aid computers in applications like financial modeling, oil and gas exploration, virtual reality, and even self-driving cars.

So, in the late 2010s, Nvidia began receiving some unusual orders. Not only were crypto enthusiasts buying up high-end GPUs to mine bitcoin… But machine-learning researchers were also using the cards to train their models.

It turns out that GPUs are really good for something called “parallelization.” This is where you break down a large computational task into smaller ones that can be calculated independently and simultaneously. That makes GPUs extremely powerful – far more than even the best central processing units (CPUs) in these types of computations.

Data storage provider Pure Storage estimates that GPUs are roughly three times faster than an equivalent CPU for machine-learning algorithms. That is an enormous advantage in a world where large models can require months to train and cost millions of dollars.

That put Nvidia on the fast track to success. Thanks to its portfolio of valuable patents and internal research, Nvidia got an enormous head start on the AI boom. No company came close.

What originally got me excited about Nvidia was what it was doing with the development of autonomous vehicles. My son was an engineering student at Stanford when that university debuted an autonomous race car named “Shelley” that used Nvidia chips.

Back in 2019, when I learned what Nvidia was planning to do with AI, I pulled the trigger and added it to the Buy List at my large-cap newsletter, Growth Investor.

Now, as I mentioned, it’s now up more than 3,000% since my recommendation, but those gains didn’t come easily. As you can see in the chart below, NVDA has experienced some wild swings…

One of those swings came just a couple of weeks ago, on Jan. 27, when shares of Nvidia lost 17%. That’s a staggering $589 billion loss in market cap – the largest one-day value destruction for a single stock in market history.

The reason? A Chinese AI company called DeepSeek.

Here’s the story…

How to Survive a Painful Drawdown

On Jan. 20, DeepSeek released a new AI model called R1 that it claims is nearly on par with American AI models. In fact, DeepSeek claims the R1 model has a comparable performance to OpenAI’s o1-mini model for ChatGPT.

What’s more, it utilizes inferior Nvidia chips, called H800s, that are compliant with the export bans that were put in place by the Biden administration.

Oh, and the company claims it was built in about two months and cost just $5.6 million to train.

As a result, DeepSeek became the No. 1 app downloaded from the Apple Inc. (AAPL) App Store.

Wall Street and the tech world began to put all of this together at the end of January. And it hammered AI stocks… and the market as a whole. The fact is that DeepSeek caused everyone to start questioning the entire roadmap of how AI is supposed to evolve.

Some investors began wondering whether the U.S. tech sector will win the AI race – for two big reasons…

1. Cost Efficiency: If DeepSeek’s AI models perform similarly to American AI models at a fraction of the cost, then it means American programmers and engineers missed something. And it throws into question the U.S. lead on AI development.
2. Reduced Hardware Usage: DeepSeek has stated that it uses far fewer chips for AI training. A report released in December showed it only used a cluster of more than 2,000 Nvidia chips to train its V3 model, while five times that number is typically used for similar AI training models.

Both raised concerns that Nvidia was overvalued… and triggered questions about the necessity for more data centers and an electricity grid buildout.

However, we have since learned that DeepSeek isn’t as great as it was made out to be. For one, the app crashes about 99% of the time. Apparently, DeepSeek doesn’t have the cloud computing capacity needed to run it. It’s also been the victim of a cyberattack.

Most importantly, the narratives that DeepSeek could use the old Nvidia chips and that Nvidia’s new ones weren’t necessary were completely false.

Once this was revealed, AI stocks came roaring back. NVDA has gained 11% in less than three weeks – which is impressive for such a large company.

The point is, if you want to bag a 1,000% gain, there are going to be bumps along the way.

There will be headlines, setbacks, naysayers, you name it… Any one of these could derail a stock.

But the fundamentally superior stocks – like Nvidia – always bounce back.

The Next Leg Higher – and a $100 Trillion Opportunity

Now, I have gone on record saying that there will be more gains ahead for Nvidia. In fact, I have even called it the “Stock of the Decade.”

In other words, this stock will change your life.

The fact is that Nvidia’s pace of innovation isn’t slowing down, folks. It’s accelerating.

Eventually, the transistors in each of Nvidia’s chips will approach the “atomic” level. Then, the laws of physics will come into play. But that’s OK, because then Nvidia will move on to quantum computing.

We’re still a ways off from that. But the good news is that there is another major catalyst that should not only help NVDA recoup its DeepSeek losses, but also get back to new highs.

I’m talking about its fourth-quarter earnings report on Wednesday, Feb. 26.

Analysts are calling for earnings of $0.85 per share on revenue of $38.13 billion, up from earnings of $0.52 per share and revenue of $22.1 billion a year ago. That translates to 63.5% year-over-year earnings growth and 72.5% year-over-year revenue growth. Analysts have upped earnings estimates over the past three months, so a fifth-straight earnings surprise is likely.

Now, Nvidia has a history of posting positive earnings surprises. So, I’m expecting big things from the stock as we approach its earnings announcement.

I will also be particularly interested to hear from its superstar CEO, Jensen Huang, and his thoughts on what he has previously referred to as a $100 trillion opportunity…

Specifically, Huang was referring to a critical turning point for artificial intelligence – one where AI breaks out of the digital world and steps into the real one – running self-driving cars and equipment, automating factories, training robotic workers… even building “digital twins” of entire cities.

This shift is massive. And investors who see where it’s headed right now stand to benefit the most.

I call this AI’s Crossover Moment – and it could create more wealth than any other tech boom in history.

This is where AI stops being a “cool tool” and starts actively transforming industries, infrastructure, and daily life.

That means the biggest profits won’t be in just Nvidia’s chips…

They won’t necessarily be in Big Tech at all.

But my proven system has generated Buy-grades on seven under-the-radar companies that I believe are ready to surge as this $100 Trillion AI Crossover moment unfolds.

Go here for details now.

Sincerely,

Louis Navellier
Senior Investment Analyst, InvestorPlace