November has traditionally been one of the best months in which to buy S&P 500 stocks. Following a recent stock market pullback, today investors have a large number of attractive potential dip buys to consider.
Bank of America data shows that, since 1927, the S&P 500 has risen 59% of the time in November and by an average of 1%. According to LLP Financial, this monthly outperformance dates all the way back to 1950, with rises in 10 of the last 11 years.
Past performance isn’t always a reliable guide to future returns. And the US stock market hasn’t exactly got off to a flyer so far this November. However, strong earnings momentum in the tech sector, allied with optimism over thawing US-Chinese trade relations, suggest US share prices could spring higher again.
There are plenty of top S&P 500 shares that deserve close attention. Here’s why I’m considering semiconductor maker Nvidia (NASDAQ:NVDA) for my own portfolio.
Shooting higher
Nvidia’s share price is up 36% so far in 2025, beating the broader S&P 500’s 14% rise. This takes gains over the last five years to a spectacular 1,192%.
Given its ability to continue smashing City sales forecasts, its market-beating performance is hardly a surprise — revenues leapt 56% in the second quarter, according to latest financials. Sales of its high-power graphics chips are sizzling as the artificial intelligence (AI) revolution boosts data centre demand.
That’s not all, though. Nvidia has also made exciting strategic progress to meet the enormous opportunity AI provides over the long term. Partnerships with blue-chip companies like Accenture, Microsoft, and Siemens to expand its Omniverse operating system mean its moving further from just selling graphic processing units (GPUs) towards enabling real-world operations like manufacturing, logistics, and industrial design.
In addition, production of the company’s next-generation chips is scaling rapidly. Chief executive Jason Huang has said production of Blackwell Ultra — which unlocks real-time reasoning and expands into agentic AI — “is ramping at full speed, and demand is extraordinary“.
Nvidia stock: a premium pick
While it’s still firing on all cylinders, there are some potential threats investors need to think about.
As I say, dialogue between the US and China on trade has improved in recent weeks. But things can change quickly, as we’ve seen, and a fresh deterioration could impact Nvidia’s shipments into China. Trade wars might create fresh supply chain issues that impact its chipmaking capabilities, too.
Fears over an ‘AI bubble’ also continue to circulate. And Nvidia’s high valuation is doing it no favours — the chipmaker trades on a huge forward price-to-earnings (P/E) ratio of 41.7 times.
But I believe Nvidia stock is worth a premium valuation like this. Despite the risk of a pullback, I think it’s a top US share to consider.
