If you are thinking of jumping onto the artificial intelligence (AI) bandwagon, you’re in good company. Many other investors are using a similar strategy, as evidenced by the blockbuster gains that leading technology names have experienced of late, including AI darling Nvidia (Nasdaq: NVDA). While Nvidia shares have been on a tear, all the company sees for the rest of 2024 is growth amid extremely bullish expectations. 

Nvidia stock is currently trading above the $1,100 level ahead of the company’s planned stock split this month, including a 5% gain on the first trading day in June while the broader markets were stuck in the doldrums. While shares have already advanced by a whopping 200% in the past 12 months, there’s reason to be optimistic about the future performance of this stock. If you believe in AI and the chipmaker that’s making innovation possible for many other companies, then Nvidia just might be a “must buy” in June. 

‘Tectonic Shift’

Nvidia CEO Jensen Huang at a recent event in Taiwan pointed to the several “tectonic shifts” in computing that have unfolded over the past six decades in which “everything changed.” However, he also noted that “we’re about to see that happen again” concerning AI. As performance continues to increase, costs will decline, all of which bode well for the future of AI and chipmakers like Nvidia. 

He explained how Nvidia is pushing the technology limits, supported by its recently introduced AI chipset Blackwell. Additionally, the company has announced its next-gen AI chips called Rubin, which it expects will accelerate AI development even further. Meanwhile, Blackwell is so fresh that it hasn’t even started shipping out to customers yet. 

The Blackwell microchips are estimated to cost $30,000 or more each. And Elon Musk has revealed his company, xAI, is eyeing a purchase of approximately 300,000 of those chips next year, an order that would have a price tag of roughly $9 billion attached to it. While Nvidia is already a $2.8 trillion company, it appears that value is only set to increase. 

Investors can expect this pace of innovation to continue, as Huang described a “one-year rhythm” for Nvidia’s AI chip upgrades. 

Is Nvidia Stock a Buy in June? 

Wall Street couldn’t be more bullish on Nvidia stock. Even though NVDA shares have been on a bull run for months, analysts believe there’s more left in the tank.

On Monday, Bank of America increased its price target on Nvidia stock to $1,500 per share, reflecting 30% more upside potential in this AI favorite. BofA analysts stated, “With potentially faster Blackwell adoption (increased mainstream AI), we see potential EPS power of $50-plus within two years.” In Q1, Nvidia reported earnings of $6.12 per share. 

As long as Nvidia continues to roll out new microchips, it’s likely to remain the go-to company in the AI space.

Meanwhile, Nvidia has a 10:1 stock split in the works, the second of its kind since 2021. Back then, Nvidia completed a 4:1 stock split, in response to which shares skyrocketed by 500%. If historical performance is any indication of what’s to come, then investors might want to keep Nvidia stock on their radar as a “must buy” in June.

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