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 Why memory is important to AI and Nvidia <\/p>\n AI training and application rely on trillions of data points, and it wouldn’t be possible to store and quickly retrieve them without specialized memory chips. As AI is used for handling more complex tasks — such as running autonomous agents or processing complicated context instead of providing recipes or travel recommendations — the need for high bandwidth memory has become increasingly important. <\/p>\n Nvidia began its reign selling its GPUs and AI hardware, but now it’s building systems with multiple working parts, including memory chips that are packed into its hardware. That means relying on memory chipmakers, such as Micron, SK Hynix, and Samsung, for a continuous, high-volume supply. <\/p>\n Unfortunately, making those specialized memory chips is far from simple, which is why only a handful of companies make the vast bulk of them. <\/p>\n The downside to the shortage is that Nvidia is at the mercy of memory chip suppliers for its own supply chain. If the suppliers can’t make memory chips fast enough, Nvidia will have to wait, potentially affecting its own business. <\/p>\n The positive is that Nvidia has the cash and purchasing scale to have priority on the memory chips being made. In its most recent quarter (ended April 26), it generated $48.6 billion in free cash flow and finished the quarter with $13.2 billion in cash and cash equivalents. It can easily pay a premium to buy them in bulk, shutting out smaller competitors and further cementing its stronghold on the industry. <\/p>\n Investors shouldn’t hear Huang’s message and become concerned; it’s just the next chapter of the AI evolution. If anything, it should be encouraging that Nvidia can use its leadership position to be a long-term force, regardless of the current hiccup. <\/p>\n Nvidia’s stock has been a disappointment this year, up only 0.60% year to date as of market close on July 29, but much of that has to do with overall sentiment surrounding big tech and the “Magnificent Seven<\/a>” stocks as a whole, versus disappointing business performance from Nvidia. <\/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 $397,081!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!* <\/p>\n Now, it’s worth noting\u00a0Stock Advisor’s total average return is 889% \u2014 a market-crushing outperformance compared to 203% 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 31, 2026. <\/p>\n Stefon Walters<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Nvidia. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Nvidia CEO Jensen Huang. Image source: Nvidia. What does it mean for Nvidia? <\/p>\n