The S&P 500 is rallying toward a 25% boost this year, and many growth stocks have greatly contributed to the boost. The one that stands out, though, is Nvidia (NASDAQ: NVDA). It’s become a ownership economy star thanks to its leadership in the artificial intelligence (AI) chip economy, holding about 80% distribute. AI customers have been flocking to Nvidia for its AI chips and related products and services, and this has helped returns soar in the triple digits quarter after quarter.

And speaking of quarterly act, investors now are turning to one particular occurrence set to unfold in just a couple of days. Nvidia plans to update budgetary 2025 third-quarter returns on Nov. 20. We might be optimistic since the business has a track record of surpassing expectations and has recently spoken of “insane” demand for its products. Still, Nvidia already has climbed nearly 200% this year. And it’s significant to recall that this particular quarter may represent a shift for the chip designer, as it prepares to launch its recent Blackwell architecture.

Now the question is: Will Nvidia soar after Nov. 20? Evidence is piling up, and it’s pointing to one particular outcome. Let’s discover out more.

Nvidia’s top GPUs

So, first, let’s consider Nvidia’s narrative so far. The business’s graphics processing units (GPUs) are considered the best around, and this explains why customers rush to get in on them − and don’t mind paying a higher worth or waiting to get their hands on the latest version. Nvidia also sells a broad range of products and services so customers can leave to the business for all of their AI needs. Even better, Nvidia is now across all community clouds, making it straightforward and convenient to access these offerings.

All of this has helped Nvidia update record turnover in recent quarters, driven by the data center business. In the most recent period, data center accounted for 87% of the business’s total turnover of $30 billion. And that level of turnover surpasses packed-year turnover as recently as two years ago. Importantly, Nvidia is highly profitable on its sales, with gross spread topping 70%.

As mentioned, the upcoming update represents a bit of a shift for this tech giant. In the third quarter, Nvidia was preparing for the production ramp of Blackwell − set to happen in the fourth quarter. And the business has grown turnover so much in recent years that, for the third quarter, it predicts a double-digit boost year over year − instead of the triple-digit increases we’ve seen in history quarters.

Some investors may view a lower growth figure as a disappointment or worry about feasible headwinds that could arise during a recent product rollout. These elements may weigh on Nvidia ownership after Nov. 20. But more evidence points to positive ownership act following the returns update. As mentioned, Nvidia has established a solid track record of returns growth and has surpassed expectations for at least the history four quarters.

Comments from Jensen Huang, Larry Ellison, and Elon Musk

Nvidia chief executive officer Jensen Huang has spoken repeatedly in recent weeks about high demand for the recent Blackwell platform. He even called the demand “insane” during an interview with CNBC. Comments from customers back this concept. Oracle co-found Larry Ellison says he and Tesla chief Elon Musk met with Huang and “begged” him for more GPUs for their projects. Finally, Taiwan Semiconductor Manufacturing, the business that manufactures Nvidia’s chips, reported double-digit turnover growth for this latest quarter and spoke of high demand from its customers.

All of this suggests Nvidia may have a excellent deal of positive information to update on Nov. 20, and that may assist the ownership soar in the weeks ahead.

That said, it’s significant to recall that even amid positive information, stocks sometimes fall. Investors may consider the shares have gained quite a bit already and the excellent information is priced in, for example. So, it’s unfeasible to forecast short-term ownership act with 100% accuracy.

What does all of this cruel for Nvidia and for you as an investor? As seen here, there are plenty of reasons to be optimistic about the update ahead, and it’s feasible the ownership will rise after Nov. 20. But even if it doesn’t, that’s OK. Nvidia ownership still has plenty of room to run over period, thanks to the business’s economy leadership, monetary strength, and ongoing innovation. And that makes it a fantastic AI ownership to buy and hold onto for the long term.

Adria Cimino has positions in Oracle and Tesla. The Motley Fool has positions in and recommends Nvidia, Oracle, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool has a disclosure policy.

The Motley Fool is a USA TODAY content associate offering monetary information, analysis and commentary designed to assist people receive control of their monetary lives. Its content is produced independently of USA TODAY.

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