Prediction: Nvidia Stock Will Soar in 2025. Here’s Why.

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The past couple of years have been a nonstop thrill ride for Nvidia (NASDAQ: NVDA) investors. The company had a market cap of just $359 billion to kick off 2023. Now, its value has soared to more than $3.35 trillion (as of this writing) — a more than ninefold increase in less than two years.

Driving the parabolic move are the company’s graphics processing units (GPUs), which quickly became the gold standard for powering artificial intelligence (AI). This has fueled revenue that jumped 480% and net income that surged 1,270% since the start of 2023.

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Investors shouldn’t expect growth of that magnitude to continue, but there’s plenty of evidence that Nvidia still has plenty of gas in the tank. Many of the world’s biggest tech companies continue to invest heavily to upgrade their infrastructure to handle the rigors of AI — and for most of them, that means stocking up on Nvidia’s state-of-the-art processors.

The obvious secular tailwinds aside, there’s a crucial detail investors may be overlooking that could signal a big move for Nvidia in 2025. Read on to find out why.

Image source: Getty Images.

For Nvidia’s fiscal 2025 third quarter (ended Oct. 27), revenue of $35.1 billion soared 94% year over year, while its adjusted earnings per share (EPS) of $0.81 surged 103%. The results were well ahead of management’s forecast, which called for revenue growth of 79%.

Management was clear about what fueled the impressive showing. “The age of AI is in full steam, propelling a global shift to Nvidia computing,” said CEO Jensen Huang.

Digging into the results, the top-line move was driven by continued strong demand within Nvidia’s data center segment, which grew 112% year over year to $30.8 billion. Much of that revenue was derived from the company’s Hopper architecture, the foundation for its H200 Tensor Core GPU, and its GH200 Grace Hopper Superchip — which are currently powering many of the world’s data centers and AI infrastructure.

Although these processors are currently the benchmark, they’re about to be supplanted by Nvidia’s Blackwell architecture, which represents the next generation of its AI-centric chips.

The company has been working to ramp up production of the Blackwell processors and has previously said it expects to ship “several billion dollars” of these chips in its fiscal 2025 fourth quarter, which ends in late January.

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