- Nvidia Corporation’s 20% stock drawdown presents a robust buying opportunity ahead of the GTC 2025 event, where key updates on TAM, products, and AI ecosystem are anticipated.
- Nvidia’s CEO Jensen Huang is expected to address market challenges, emphasizing product refresh cycles and the company’s AI ecosystem.
- Nvidia aims to solidify its market dominance against peers like Broadcom and AMD, focusing on TCO savings and potential expansion beyond a trillion-dollar TAM.
- Despite regulatory risks, Nvidia’s attractive valuation and potential significant upside make it a Buy, with the GTC event serving as a crucial catalyst.
Investment Thesis
In 2 years, Nvidia Corporation (NASDAQ:NVDA) went from recording some of its best starts to the calendar year to the worst start on the stock market. That is how quickly sentiment can change, no matter Nvidia’s role in shaping the AI revolution that we see today.
The rapid change in sentiment can be tied to a multitude of headwinds that have gotten investors taking profits and/or cutting positions entirely in Nvidia’s stock. Chief among these headwinds is the untimely narrative of economic strength waning, putting growth stocks like Nvidia at a critical juncture.
Nvidia’s management understands the importance of this, which is why I believe next week’s GTC 2025 conference, the “Woodstock of AI,” will be a key game changer moment for Nvidia.
I anticipate important updates and refreshes to Nvidia’s total addressable market, or TAM, their product refresh cycle, and a further expansion of Nvidia’s growing reach in the AI world with their full-stack AI ecosystem.
Ahead of Nvidia’s event, I believe that the 20% drawdown in the company’s stock price has made the stock look very interesting. I reiterate my Buy rating on Nvidia.
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