A number of U.S. companies ramped up efforts on Monday, planning to issue more than $40 billion in bonds in the credit market. From chip giant NVIDIA (NVDA) to Qnity Electronics (Q), companies of all kinds are pushing forward with financing plans amid a broad rally in global markets. At the time, oil prices fell sharply, stock markets moved higher, and short-term U.S. Treasury yields retreated, reflecting reduced market expectations for near-term interest rate hikes in the United States. NVIDIA is expected to be the largest issuer in the investment-grade bond market that day, while Qnity launched a sizable financing project for leveraged loan investors, with rising high-yield bond prices also driving their yields lower.
In recent years, NVIDIA has proven itself to be an excellent investment choice, with its stock price soaring 1,000% over the past five years. This artificial intelligence chip giant was among the first to monetize AI investments on a large scale, with its chips becoming an essential tool for customers on their AI journey—from model training to practical applications solving real-world problems. This strong demand has driven NVIDIA to record profits: in its most recent full fiscal year, revenue grew 65% to $215 billion, with net profit climbing to $120 billion. Despite facing competitors, customers continue to flock to NVIDIA because its graphics processing units (GPUs) offer the fastest speeds in the industry, an advantage that helps improve efficiency and enables customers to commercialize AI projects faster, thereby reducing total costs over time.
NVIDIA is not just a chip company; its GPUs are part of a complete system that encompasses networking tools, enterprise software, and a range of other products and services. The company also designs platforms for specific industries, such as providing AI-assisted drug discovery solutions for pharmaceutical and biotech companies. From autonomous vehicles and humanoid robots to next-generation telecommunications technology, NVIDIA has become an important partner for companies developing future technologies, with its business scope extending far beyond GPUs. NVIDIA is currently entering another massive market—the central processing unit (CPU) space, which has long been dominated by Intel and Advanced Micro Devices.
At 9:00 AM Pacific Time on June 24, NVIDIA will hold its annual shareholder meeting, which will be conducted online. The agenda includes the election of 10 directors and the approval of executive compensation, among other matters. Based on NVIDIA’s strengths outlined above and its currently attractive valuation—a forward price-to-earnings ratio of 22 times—NVIDIA stock can be bought today. However, investors do not need to rush in before June 24, because as long-term investors with a holding target of at least five years, short-term price fluctuations around the shareholder meeting have minimal impact on final returns over a long holding period. In summary, NVIDIA is worth buying, whether now or after June 24.
