Nvidia investor enthusiasm is justified: Stay on 'the gas pedal'

Nvidia (NVDA) hit the $5 trillion market capitalization mark at Wednesday's market open.

Innovator Capital Management chief investment strategist Tim Urbanowicz and Yahoo Finance Senior Reporter Ines Ferré join Opening Bid host Brian Sozzi to talk about the artificial intelligence (AI) chipmaker's recent stock price action and why investor enthusiasm is warranted.

To watch more expert insights and analysis on the latest market action, check out more Opening Bid.

Video Transcript

00:00 Speaker A

you look at Nvidia right now, now accounts for 8% of the S&P 500. We haven't seen something like this since the 1970s.

00:09 Speaker A

So, this is an area we want to continue to keep our foot down on the pedal. We do think a lot of the easier money has been made in the stock. We think looking down in the sub $500 billion market cap range and a lot of the AI infrastructure names is probably makes a lot more sense, but still not a trade that you can take your foot off the gas pedal on.

00:41 Speaker B

And as maybe I'm just too jacked up on this Nvidia news, had a couple energy drinks this morning, for the team's pot luck. I'm maybe I'm just too excited. I actually got a little bit of sleep for a change. Am I too excited about this Nvidia story? We're supposed to be skeptical. I'm looking for holes in what Jensen said yesterday, but to me, he hit all the notes. Demand looks strong, they're innovating, and I don't know, I can't see who is going to challenge Nvidia. I know Qualcomm made its attempt early in the week, stock popped.

01:16 Speaker B

I don't even see these companies on the same planet.

01:21 Speaker C

It's hard not to get excited. I mean, when you watched what he was saying, uh, the massive growth with Blackwell, um, also the talk about robotics that it is potentially going to be the biggest consumer uh product uh and also for the industrial uh segment. Uh when you looked at those images of factories with robots uh that were doing everything, when he talked about uh self-driving uh robot taxis,

02:08 Speaker C

I mean, it's just very, very difficult not to get excited about that. I will tell you that during that robotaxi, I thought to myself, great. In 5 or 10 years, I don't even have to drive my daughter to karate anymore. She can just get in one of those, and that's it. I mean, you think about the implications of all of this, and it's very difficult not to get excited about that.

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