Key Takeaways
- Nvidia is a leading artificial intelligence and semiconductor stock with a huge advantage in the AI market
- The company is well-positioned to drive the next chapters of the AI boom, with a focus on innovation and expansion into new products and services
- Nvidia’s valuation is reasonable, making it a worthwhile consideration for long-term investors
- Investors should expect volatility in the stock market, but can mitigate risk by investing in great companies and staying the course over the long term
- Procrastination can be costly when it comes to investing, and it’s essential to research options and make informed decisions
Introduction to Nvidia
Nvidia may be the most well-known artificial intelligence and semiconductor stock on the planet, according to The Motley Fool. The tech giant makes the graphics processing units (GPUs) that fuel top AI tasks such as the training of large language models (LLMs), or inferencing — when an AI model applies that training to answer a question or solve a problem. As The Motley Fool notes, "Nvidia’s early entrance into the AI market gave it a huge advantage, and its focus on innovation has kept it in the top spot." This has led to enormous gains in earnings, with revenue and net income climbing by double digits year over year in recent quarters.
Nvidia’s Position in the AI Market
Nvidia has powered the early phases of the AI boom, but the company is also well-positioned to drive the next chapters. This is because it has tailored its chips to serve inferencing — seen as the next big growth area for AI — and expanded its offerings into a variety of products and services to suit customers’ AI needs. As The Motley Fool notes, "Nvidia has also made smart strategic moves, such as partnering with Nokia to develop AI for telecom. Just recently, it acquired the inferencing technology of chip startup Groq." This strategic expansion has set Nvidia up for continued growth and success in the AI market.
Investing in the Stock Market
Investors can get rattled when the stock market — or a particular stock — pulls back sharply. But as The Motley Fool notes, "if you’re going to invest in the stock market, you must expect volatility." Fortunately, volatility is generally not a bad thing, as long as you expect and prepare for it. According to Per Hartford Funds, over the 88 years including 1937 through 2024, stocks advanced in 67 years and retreated in 21. This unpredictability is why it’s essential to invest for the long term and not put any money you might need within five years (or 10, to be more conservative) into the stock market.
The Importance of Long-Term Investing
Like the broader market, individual stocks in great companies can have bad years — but as long as they remain promising, if you hang on for many years, you can do well. As The Motley Fool notes, "market pullbacks tend to last just a few months, and relatively few last more than a year (though a multiyear slump is always possible)." This is why it’s essential to expect volatility and not panic. Instead, try to grab some shares of great companies when they’re on sale — or more shares of solid index funds. By doing so, you can build wealth over the long term and achieve your financial goals.
The Dangers of Procrastination
Procrastination can be costly when it comes to investing. As The Motley Fool notes, "many people put off saving and investing for college or retirement or some other goal, often because they don’t feel confident about it." Suddenly receiving a big cash infusion can also leave us waffling. For example, if you leave a lump sum in a bank account for five years, earning very little, while you put off figuring out what to do with it, you could miss out on significant gains. If the account grows by an annual average of, say, 1%, you’ll end up with about 5% more in five years. If it had been in the stock market for those five years, and the market had averaged an annual gain of 7%, your lump sum would have grown by 40%.
Company Profile: Slack
The company profiled in this article is Slack, a channel-based messaging platform that was launched in 2013. As The Motley Fool notes, "I trace my roots to 2009, when a fellow in Vancouver, Canada, and some friends formed a social gaming company called Tiny Speck. It debuted an online game called Glitch, which ultimately failed. But while creating the game, they’d also developed a unique messaging technology useful for businesses; they launched me as a channel-based messaging platform in 2013." Today, Slack boasts more than 200,000 paid customers, including 77 of the Fortune 100 companies, and daily users in 150-plus countries. The company was bought by Salesforce in 2021 and includes many features powered by artificial intelligence.
https://www.dallasnews.com/business/2026/01/25/the-motley-fool-powering-artificial-intelligence/