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Tesla investor Ross Gerber took a bullish stance on Nvidia Corporation (NASDAQ:NVDA) and strongly advised against selling its shares.
What Happened: On Tuesday, Gerber suggested that parting with Nvidia stock could be a significant financial misstep during his appearance on CNBC, where he discussed the burgeoning potential of AI and its implications for Nvidia.
Gerber explained that as Nvidia finally reaches a full valuation, investors can get confused about whether they should sell or buy more. He suggested “take the emotions out” and be careful while making decisions.
When CNBC mentioned another analyst who sold his positions in Nvidia, Gerber promptly responded, “No, never do that. If you sell Nvidia out of your position, that would be a crucial mistake that could cost you greatly in your lifetime.”
Despite Nvidia stocks rising fast and consequentially becoming more volatile, Gerber feels that investors need to look long-term and assess how much risk they are comfortable with.
“The volatility of Nvidia is always going to be there. It was down 50% in 2022 and it was really hard to take. It was 50% down another time recently that I can remember. And that’s investing in technology stocks. But it doesn’t change the fact the fundamental value of the company,” he said, adding Nvidia’s contribution to the burgeoning AI industry.
"Do not sell Nvidia stock. It could be a crucial mistake that will cost you greatly in your lifetime." $NVDA from @CNBCi yesterday. Hear my thoughts on the AI opportunity. https://t.co/DoCZmI9wrC— Ross Gerber (@GerberKawasaki) March 14, 2024
Why It Matters: Gerber’s previously lauded the company’s performance, calling it “the most impressive company I’ve ever seen” and highlighting its significant undervaluation despite record earnings and substantial returns to shareholders. This sentiment aligns with other experts, like Wharton professor Jeremy James Siegel, who predicts that Nvidia’s shares could see a two to threefold increase, drawing parallels to Cisco’s surge during the dot-com boom.
Citadel CEO Ken Griffin has also expressed confidence in NVIDIA’s position. He acknowledged the company’s strong performance, suggesting that NVIDIA is “really on top of their game.” With Nvidia’s GPUs holding an estimated 80% market share and being essential for AI services, the company’s stock has soared, outperforming the broader market significantly.
As of Thursday, Nvidia’s stock closed at $906.92, slightly down from its previous close of $908.88. However, the company’s recent earnings report exceeded expectations, with an EPS surprise of over 11% and revenue surpassing estimates by approximately 7%.
Read Next: Congressman Buys Nvidia Stock Day Before Earnings, Here’s How Much He’s Made
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