Missed Nvidia in 2009? This Rare Signal Is Flashing Again.\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/a> <\/p>\n This scheme involves smuggling Nvidia chips into markets like China — where Nvidia has strict import restrictions and controls — using methods that circumvent audits intended to verify legitimacy. Despite the issue, there are larger implications that should be encouraging to Nvidia investors. <\/p>\n A major point Huang made is that Nvidia’s AI chips aren’t like a typical video game graphics card, where you buy it once and it works indefinitely. These chips are part of an ecosystem that requires constant updates (both software and hardware maintenance) that aren’t available to chips acquired on the black market. <\/p>\n In other words, they may work now, but without software updates, security patches, and Nvidia’s engineering support, their lifespans are short and will inevitably become unusable or a liability to the companies using them. That’s the basis for his “dead end” comments. <\/p>\n Nvidia wants to stay in Washington’s good graces <\/p>\n As it stands, Nvidia has a monopoly on the advanced GPUs<\/a> needed to train and deploy AI. Companies like Amazon and Alphabet are beginning to make their own in-house chips, but for the most part, Nvidia comfortably dominates the market. It won’t last forever, but other companies have lots of ground to make up before catching up to Nvidia. <\/p>\n Arguably its biggest obstacle right now, though, is government restrictions and compliance requirements. The U.S. has already implemented strict export bans on certain chips to China, so Huang’s taking this stance is a way to stay in the good graces of the U.S. government and avoid further crackdowns or potential fines. The fewer geopolitical and regulatory worries, the better. <\/p>\n Nvidia is still rolling strong <\/p>\n The black-market chips haven’t had much of a negative effect on Nvidia’s business. In its most recent quarter (ended April 26), it made $81.6 billion in revenue (up 85% year over year) and $58.3 billion in net income (up 211% year over year). <\/p>\n Nvidia is a well-oiled machine, and this shows just how wide its technological and competitive moat is. That should be encouraging news for investors seeking sustainable growth and who may have had “AI bubble” worries. There’s a reason the company was comfortable authorizing an $80 billion share buyback program and increasing its dividend from $0.01 to $0.25. <\/p>\n Should you buy stock in Nvidia right now? <\/p>\n Before you buy stock in Nvidia, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $395,679!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,294,805!* <\/p>\n Now, it’s worth noting\u00a0Stock Advisor’s total average return is 929% \u2014 a market-crushing outperformance compared to 211% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of July 13, 2026. <\/p>\n Stefon Walters<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Nvidia. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Nvidia Corporation. Going nowhere fast <\/p>\n