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Investing $10,000 in AI chipmaker Nvidia when it first went public in 1999 would be worth more than $30 million today.
Investors usually aim to “buy low and sell high.” former Technical Strategist and Vice President at Morgan Stanley the current The global head of technology strategy at research firm Fundstrat is taking a different approach to Nvidia: “Buy high, sell even higher.”
On Wednesday’s episode of Yahoo Finance Stock Translation During the podcast, Newton responded to a question about whether investors should buy Nvidia today or wait until the price drops.
He said he “almost always” adopts the philosophy of buying high and selling low because underperforming stocks can take a long time to grow and it can be hard to gauge whether the timing is right to invest.
“That’s where a lot of investors get it wrong,” Newton said.
Related: An employee who worked for this company for the past five years is now a “semi-retired” millionaire.
The “buy high, sell even higher” strategy has proven that this stock can perform well, making it a safer investment.
“If a horse escapes the stable, sometimes you have to chase it because it may not come back,” Newton said.
Newton said he owns Nvidia shares and that two factors are most important when considering a purchase: risk tolerance and time frame.
Nvidia has been responsible for a third of the S&P 500’s gains this year.
Related: Elon Musk praises NVIDIA CEO Jensen Huang’s leadership style
Nvidia 3,000% The tech giant’s stock price surge over the past five years has seen its valuation soar from $346 billion in January 2023 to more than $3 trillion on Wednesday, briefly making it the world’s most valuable company. world It started in mid-June and is currently Beyond By Microsoft and Apple.
Nvidia is currently Take the lead The Magnificent Seven stocks are a group consisting of Amazon, Alphabet, Apple, Meta, Nvidia, Microsoft and Tesla.
At the time of writing, AI chipmakers’ profits so far this year are about 146%.
Nvidia co-founder and CEO Jensen Huang shows off new Blackwell GPU chips in March 2024. Photo by David Paul Morris/Bloomberg via Getty Images
The secret to Nvidia’s growth has been its graphics processor units (GPUs), which the company initially sold for gaming.
Over time, Nvidia realized that the GPUs it was using for graphics tasks could also be used for machine learning and AI.
Nvidia is currently 80% Market share of GPUs and their chips Power ChatGPT by OpenAI.
Related: NVIDIA CEO Jensen Huang summed up the company’s AI chip domination strategy in just five words.