Nvidia Corp. (NASDAQ:NVDA) is on the cusp of a significant growth phase, fueled by its leadership in AI infrastructure.
What Happened: Investor Ross Gerber compared Jensen Huang's chip giant current financial trajectory to Apple Inc. (NASDAQ:AAPL) during the early iPhone years, highlighting the immense potential in AI, Yahoo Finance reported on Tuesday.
"Nvidia is printing money like Apple did in the early days of the iPhone," he said in an interview with Yahoo Finance.
Gerber, a decade-long investor in Nvidia and Tesla, sees the company's growth driven by the global development of AI infrastructure, largely supported by Nvidia's cutting-edge chips. He mentioned that Nvidia's profitability and strong market position in the chip industry make the upcoming five years promising.
Gerber also compared Nvidia to Tesla, adding the former has been a better investment in the past decade.
This year, Nvidia has drawn $30 billion in retail investor inflows, ranking as the most favored stock among retail investors in 2024. Despite some traders recently offloading shares, Nvidia's stock has surged 181% year to date.
Nvidia's founder and CEO, Jensen Huang, is set to speak at CES 2025, potentially further boosting the stock.
Why It Matters: Nvidia's strategic focus on robotics as a new growth driver comes amid fierce competition in the AI chipmaking sector, particularly from Advanced Micro Devices, Inc. . Nvidia's valuation surpassed $3 trillion, rivaling Apple Inc. , fueled by the AI boom. The company has also invested in humanoid robotics firms like Figure AI, marking its entry into 'physical AI.'
Additionally, Ibiden Co., a key supplier for Nvidia, is considering expanding its production capacity to meet the surging demand for AI chip package substrates. This move underscores the robust demand for AI-use substrates, with all available stock being quickly acquired by customers. Ibiden's new substrate factory in Gifu, Japan, is expected to begin operations at 25% capacity by late 2025, eventually reaching 50% by March 2026.
Price Action: Nvidia was trading slightly lower at $137.24 in overnight trading hours at 2:19 am ET.
