Nvidia, Meta Platforms, and CrowdStrike are all still no-brainer buys.
Over the past year, many tech stocks rallied on the prospects of interest rate cuts. But with the Nasdaq now hovering near its all-time highs, it might seem like the right time to take profits in some of those stocks before the bears come back.
That’s a prudent strategy, but I believe investors should still be adding more high-quality blue-chip tech stocks to their portfolios instead of hastily liquidating them. For me, these three stocks are still no-brainer buys in May: Nvidia (NVDA -1.99%), Meta Platforms (META -0.28%), and CrowdStrike (CRWD 2.03%).
Image source: Getty Images.
1. Nvidia
Nvidia, the world’s leading producer of discrete GPUs, has been one of the market’s hottest growth stocks. Its shares have soared more than 560% over the past three years as the explosive growth of the artificial intelligence (AI) market has driven more companies to buy its high-end data center chips to process AI tasks.
That growth spurt initially surprised the bears. Back in fiscal 2023 (which ended in Jan. 2023), its revenue growth flatlined as its adjusted EPS dropped 25%. That deceleration was caused by the PC market’s post-pandemic decline and macro headwinds for the data center market. But in fiscal 2024, its revenue and adjusted EPS soared 126% and 288%, respectively, as the popularity of ChatGPT lit a raging fire under the generative AI market.
For fiscal 2025, analysts expect Nvidia’s revenue and adjusted EPS to grow another 84% and 93%, respectively, as the demand for new AI chips continues to outstrip available supply. Those are incredible growth rates for a stock that trades at 39 times forward earnings.
Nvidia’s long-term growth could eventually be throttled by competition from AMD‘s cheaper data center GPUs, first-party chips at hyperscale cloud providers, and the tightening export curbs on its chip sales to China. But for now, it arguably remains the easiest way to profit from the secular expansion of the global AI market.
2. Meta Platforms
Meta Platforms — the world’s top social…
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