Listen and subscribe to Opening Bid on Apple Podcasts , Spotify , or wherever you find your favorite podcasts.
It still makes a lot of sense to own momentum stock darling Nvidia ( NVDA ).
Gerber opined those not investing in Nvidia are comparable to people “not investing in Napoleon during the French Revolution.”
Gerber says his firm has owned Nvidia's stock for over a decade.
Initially, Nvidia’s strong position in gaming chips was the draw. But as Nvidia has pivoted to autonomous car chips and powerful AI chips, Gerber has been gobbling up more shares of the Jensen Huang-led tech play.
“It’s been the best investment we’ve ever made,” Gerber added.
The firm’s longtime bullishness appears to have paid off handsomely. Recently, shares have skyrocketed with plenty of upside.
Nvidia's stock has surged more than 2,900% in the past five years, fueled by one impressive quarter after another as it grabs the leadership position in cutting-edge chips. The company's strong results continued in its first fiscal quarter, with sales rising 18% year over year to $26 billion. Non-GAAP earnings boomed 461% from the prior year.
When Nvidia reports its closely watched second quarter results on Wednesday afternoon , the Street is looking for more of the same. Revenue and earnings are expected to rise 113% and 156%, respectively.
Gerber isn’t alone in his optimism on Nvidia.
In a June visit to the Opening Bid podcast , EMJ Capital founder Eric Jackson told Sozzi he believed the company could hit a $6 trillion market cap, nearly double its then-$3.25 trillion market cap.
Nvidia's current market cap stands at about $3.18 trillion.
Goldman Sachs analyst Toshiya Hari recently reiterated a Buy rating on Nvidia ahead of earnings.
Concerns such as delays in next-generation Blackwell GPU architecture are potential short-term woes, said Hari in a note to clients.
"Overall, we expect management commentary coupled with supply chain data points over the coming weeks to lead to higher conviction as it pertains to Nvidia’s earnings power in calendar 2025,” wrote Hari in a note.
Hari noted that significant customers, including Alphabet ( GOOG , GOOGL ) and Meta ( META ), have unveiled plans to increase capital spending, and Microsoft ( MSFT ) and Amazon ( AMZN ) are allocating capital expenditure growth toward AI and cloud products.
“Intra-quarter data points continued to indicate a robust demand environment,” wrote Hari.
This past week, Nvidia's rival AMD ( AMD ) announced the $4.9 billion acquisition of server equipment maker ZT Systems. To Nvidia bulls, the deal underscored how much the company is outpacing a worthy competitor such as AMD, led by Lisa Su .
“We’re long-term investors,” Gerber said. “I think Nvidia should be a core holding, with Microsoft, for sure.”
Brian Sozzi fields insight-filled conversations and chats with the biggest names in business and markets on Opening Bid . You can find more episodes on our video hub or watch on your preferred streaming service .