nvidia (Nvda 8.93 %Jes Last year, there was more thunderstorms, which added more than 170 %, and emerged as a key player at the height of artificial intelligence (AI). The reason is that the tech giant sells a wide range of related products and services along with the world’s high -performing AI chips, along with its AI stories as well as consumers. Nodia’s chief Jensen Huang also called the company “on -ramp” as “on -ramp” during an interview on the BG2 pod Podcast a few months ago.
All this is especially a great deal that AI’s ability to revolutionize in many industries is considered and the revenue of companies involved in AI development and AI to improve their business Use their income spoils their income. Today’s $ 200 billion AI market predicts that it will reach more than $ 1 trillion by the end of the decade.
NVIDIA is well positioned to take advantage of long -term And in a nearby period. In fact, my prediction is that this hot stock will not take a break this year and instead it will increase in 2025 – thanks to this one thing. Let’s check it.
Image Source: Getty Images.
DPSEC NEWS AND NEVIDA
First of all, though, earlier this week, it is important to identify the news that hurts the NVIDIA stock. The Chinese start -up dedicic launched a large language model, saying that development took only two months and its cost million is less than 6 million. It weighed on AI stock, including NVIDIA, as it had invested widely in this technology. The concern was US AI consumers, with less powerful chips looking at DiPsic successfully training their LLM, they can think twice before buying NVIDIA’s most expensive GPUs.
But it is also possible that it will be quite the opposite, and with this advance, American companies will actually pledge to use The Top GPU to ensure their leadership. However, I am not seeing the news as something that will damage the possibility of NVIDIA growth. Now, let’s take a brief look on the path that NVIDIA has traveled on the way.
The Tech Dev started as a designer of graphics processing units (GPU), which mainly served the video game industry. But GPU’s ability to take numerous tasks at once made it an excellent source for many other fields – so Nvidia created a parallel computing platform, CUDA, which in the market Helped to explode.
And as soon as Ai Boom caught, it was clear that Nvidia’s GPUs would play an important role. The company’s revenue reports confirmed this, as in recent years double and triple digits increased the revenue after a quarter to reach a record of billions of dollars. In recent quarters, NVIDIA has reported more than $ 35 billion. The important thing is that NVIDIA has not only given rise to the increase in revenue, but also with a very strong profit on its sales – the total margin over the past one year is more than 70 %.
Now, let’s go along with our predictions. Some investors are concerned that in the past two years, after the performance of NVIDIA’s excellent stock – increased by 800 % during this period – the stock may be due to a break. And this scenario could have been if Nvidia rested on its honor and only continued to sell its existing products.
But Nvidia does not stand silent. This market powerhouse is currently launching its new Blackwheel architecture and the next generation architecture, Rubin, will probably be far behind. News notifications, including in a Taiwan Economic DailySuggest that Robin’s release may be by the middle of this year – much more than expected as it was actually planned for 2026.
NVIDIA’s innovation
My prediction is an innovation – these two launches – this year NVIDIA will push the stock more. For some reasons. Such a major product release shows that Huang was serious when it said the company would update its GPU on an annual basis and could turn this promise into reality. Annual updates make it very difficult for rivals to catch and not stand up to NVIDIA, and this gives us the reason for the long -term development.
This year, the release of two major products will also produce some concrete that we can now see, and it is income. The company had already said that Blackwell would earn several billion dollars in financial fourth quarter – the period that would shut down later this month – and the total margin would be more than 70 %. So the new release of NVIDIA can increase revenue right now, and at a high level of profit. If incoming income reports confirm this, investors can pile up this top player.
Finally, trading 40 times ahead of income estimates, NVIDIA is not cheap, but it has the capacity to run – especially in the light of its growth and profitable profile.
Considering all of this, my prediction is that NVIDIA’s first performance will not stop here and it should continue in 2025. And the good news is, even if I am wrong about it, the leader of this market still takes your portfolio to potentially supercharge. With time
