It's not too late to buy Nvidia. Here are the reasons we say 'own it, don't trade it'

An important development from the financial markets: Want to start an Nvidia position but think it's too late? The stock hit an all-time high on Thursday and has quickly dropped 7% since then. We know that Nvidia can swing wildly in the near-term.

With earnings coming up on Wednesday evening, we feel that a "beat and raise" quarter is the minimum requirement. It's been the bar for years now, as we wrote in Sunday's earnings preview . Even if that bar is cleared, there are so many moving parts that there's no telling where the stock might trade after the release.

Economic Details

We tend to like it when a hot stock cools off a bit ahead of the print. How does that line up with Jim Cramer's column from a couple of weeks ago, when he wrote about the reasons why it might not matter if you are "late" in buying stocks tied to the secular artificial intelligence boom? Listen to Nvidia CEO Jensen Huang talk about AI being the fourth industrial revolution, and the next leg of agentic AI needing 100 times more computing power than currently available, and it might still be early.

And, Amazon CEO Andy Jassy? He told Jim earlier this month that investors will reap rewards from all the company's AI spending. It's generally not our style to chase stocks near record highs, nor do we love buying a stock right into an earnings release — even if you're right on the numbers, the price reaction is too hard to game.

However, for those without an Nvidia position on the books currently, here is where we stand. During Monday's Morning Meeting, Jim said, "If you wanted to buy some here, I totally endorse it. I just feel that we own it, we don't wanna trade it.

Analyst Views

" Sure, it's hard to think it's anything but late when Nvidia and other stocks have exploded higher in the past three years. But, to never start a position because you are worried that you missed rallies that have already transpired, when the long road ahead looks primed to run, would violate No. 13 on Jim's list of investing rules, "No woulda, shoulda, coulda.

" If you have not started a position in Nvidia yet, don't let your past inaction prevent you from getting on board. Jim has repeatedly and openly talked about mistakenly exiting Alphabet in March 2025 on concerns about AI and federal litigation. It quickly became apparent that AI was not a problem, and neither was the government.

The Club re-initiated a position in the Google parent in late December 2025 after a huge run higher. We built it up over time, and we're sitting on unrealized gains of 30%. We think that's only the beginning.

Financial markets are tracking the development closely as investors assess the likely impact.