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Welcome to Episode #444 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey went solo to make a case for buying NVIDIA right now.
A year ago, Tracey did an episode of the Market Edge Podcast that also made the case for buying NVIDIA. Over the last year, NVIDIA was up 43.9% while the S&P 500 was up 12.9%. However, as of the recording of this podcast, on May 13, 2025, NVIDIA was down 6% year-to-date.
NVIDIA hasn’t yet reported earnings, but others in the AI Revolution trade have done so. Those earnings reports have been solid.
Is the panic over the AI Revolution trade being “over” misplaced?
Vertiv is involved in the services side of the AI Revolution, including the racks in the data centers. It is a partner of NVIDIA and has already reported earnings. Vertiv beat on earnings again.
Shares of Vertiv have rallied big off the Liberation Day lows. It is up 53% in the last month. Earnings for Vertiv are also expected to rise 24.6% in 2025. As a result, Vertiv now has a forward price-to-earnings (P/E) ratio of 29.8.
Sterling Infrastructure provides large scale infrastructure services in E-Infrastructure, which includes data centers, Transportation and Building Solutions. Last quarter, Sterling said that data centers was “very active” and now represents 65% of E-Infrastructure backlog.
Shares of Sterling have rebounded off the Liberation Day lows, adding 38.4% in the last month. Earnings are expected to rise 38.5% in 2025. Sterling trades with an attractive P/E of 22.
Should investors be looking to infrastructure companies like Sterling as an AI Revolution play?
NVIDIA makes the chips that are powering AI. Earnings soared the prior 2 years as AI took off. NVIDIA’s earnings jumped 293.9% in fiscal 2024 and 130% in fiscal 2025.
Defying the naysayers, who believed AI would burn out quickly, this year, earnings are expected to rise another 43.5% and then gain 26.8% in fiscal 2027.
Meanwhile, shares of NVIDIA have lagged the last 6 months, falling 7.8% in that time. But earnings estimates have been revised higher which has led to a much cheaper stock on a forward P/E basis.
Is NVIDIA Cheap in 2025?
Last year, when making the case for NVIDIA on this podcast, NVIDIA was trading with a forward P/E of 39 and a PEG ratio of 1.3.
On the day this podcast was recorded, on May 13, 2025, NVIDIA was trading with a forward P/E of 29 and a PEG ratio of 1.2.
NVIDIA is trading near the company’s recent lows on a P/E basis.
Is there a case for buying NVIDIA right now?
What Else Should You Know About NVIDIA?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of VRT and STRL in Zacks Value Investor portfolio and in her own personal portfolio.]
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The Case for Buying NVIDIA Right Now
Welcome to Episode #444 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey went solo to make a case for buying NVIDIA right now.
A year ago, Tracey did an episode of the Market Edge Podcast that also made the case for buying NVIDIA. Over the last year, NVIDIA was up 43.9% while the S&P 500 was up 12.9%. However, as of the recording of this podcast, on May 13, 2025, NVIDIA was down 6% year-to-date.
NVIDIA hasn’t yet reported earnings, but others in the AI Revolution trade have done so. Those earnings reports have been solid.
Is the panic over the AI Revolution trade being “over” misplaced?
2 AI Revolution Stocks for Your Short List
1. Vertiv Holdings Co. (VRT - Free Report)
Vertiv is involved in the services side of the AI Revolution, including the racks in the data centers. It is a partner of NVIDIA and has already reported earnings. Vertiv beat on earnings again.
Shares of Vertiv have rallied big off the Liberation Day lows. It is up 53% in the last month. Earnings for Vertiv are also expected to rise 24.6% in 2025. As a result, Vertiv now has a forward price-to-earnings (P/E) ratio of 29.8.
Should Vertiv be on your Short List?
2. Sterling Infrastructure, Inc. (STRL - Free Report)
Sterling Infrastructure provides large scale infrastructure services in E-Infrastructure, which includes data centers, Transportation and Building Solutions. Last quarter, Sterling said that data centers was “very active” and now represents 65% of E-Infrastructure backlog.
Shares of Sterling have rebounded off the Liberation Day lows, adding 38.4% in the last month. Earnings are expected to rise 38.5% in 2025. Sterling trades with an attractive P/E of 22.
Should investors be looking to infrastructure companies like Sterling as an AI Revolution play?
Should You Buy NVIDIA in 2025?
1. NVIDIA Corp. (NVDA - Free Report)
NVIDIA makes the chips that are powering AI. Earnings soared the prior 2 years as AI took off. NVIDIA’s earnings jumped 293.9% in fiscal 2024 and 130% in fiscal 2025.
Defying the naysayers, who believed AI would burn out quickly, this year, earnings are expected to rise another 43.5% and then gain 26.8% in fiscal 2027.
Meanwhile, shares of NVIDIA have lagged the last 6 months, falling 7.8% in that time. But earnings estimates have been revised higher which has led to a much cheaper stock on a forward P/E basis.
Is NVIDIA Cheap in 2025?
Last year, when making the case for NVIDIA on this podcast, NVIDIA was trading with a forward P/E of 39 and a PEG ratio of 1.3.
On the day this podcast was recorded, on May 13, 2025, NVIDIA was trading with a forward P/E of 29 and a PEG ratio of 1.2.
NVIDIA is trading near the company’s recent lows on a P/E basis.
Is there a case for buying NVIDIA right now?
What Else Should You Know About NVIDIA?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of VRT and STRL in Zacks Value Investor portfolio and in her own personal portfolio.]