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November has historically been top-of-the-line months wherein to purchase S&P 500 shares. Following a current inventory market pullback, at this time traders have numerous enticing potential dip buys to contemplate.
Financial institution of America information reveals that, since 1927, the S&P 500 has risen 59% of the time in November and by a mean of 1%. Based on LLP Monetary, this month-to-month outperformance dates all the best way again to 1950, with rises in 10 of the final 11 years.
Previous efficiency isn’t at all times a dependable information to future returns. And the US inventory market hasn’t precisely obtained off to a flyer to date this November. Nonetheless, robust earnings momentum within the tech sector, allied with optimism over thawing US-Chinese language commerce relations, recommend US share costs may spring greater once more.
There are many prime S&P 500 shares that deserve shut consideration. Right here’s why I’m contemplating semiconductor maker Nvidia (NASDAQ:NVDA) for my very own portfolio.
Taking pictures greater
Nvidia’s share worth is up 36% to date in 2025, beating the broader S&P 500’s 14% rise. This takes features during the last 5 years to a spectacular 1,192%.
Given its capacity to proceed smashing Metropolis gross sales forecasts, its market-beating efficiency is hardly a shock — revenues leapt 56% within the second quarter, in line with newest financials. Gross sales of its high-power graphics chips are scorching as the synthetic intelligence (AI) revolution boosts information centre demand.
That’s not all, although. Nvidia has additionally made thrilling strategic progress to satisfy the large alternative AI offers over the long run. Partnerships with blue-chip corporations like Accenture, Microsoft, and Siemens to broaden its Omniverse working system imply its transferring farther from simply promoting graphic processing items (GPUs) in the direction of enabling real-world operations like manufacturing, logistics, and industrial design.
As well as, manufacturing of the corporate’s next-generation chips is scaling quickly. Chief govt Jason Huang has mentioned manufacturing of Blackwell Extremely — which unlocks real-time reasoning and expands into agentic AI — “is ramping at full pace, and demand is extraordinary“.
Nvidia inventory: a premium choose
Whereas it’s nonetheless firing on all cylinders, there are some potential threats traders want to consider.
As I say, dialogue between the US and China on commerce has improved in current weeks. However issues can change shortly, as we’ve seen, and a contemporary deterioration may affect Nvidia’s shipments into China. Commerce wars may create contemporary provide chain points that affect its chipmaking capabilities, too.
Fears over an ‘AI bubble’ additionally proceed to flow into. And Nvidia’s excessive valuation is doing it no favours — the chipmaker trades on an enormous ahead price-to-earnings (P/E) ratio of 41.7 instances.
However I consider Nvidia inventory is value a premium valuation like this. Regardless of the chance of a pullback, I feel it’s a prime US share to contemplate.
