Nvidia (NVDA) Shares Surge Ahead of CES 2025 Announcement

Nvidia’s stock surged 5.1% early in the day after market sentiment improved, driven by anticipation surrounding CEO Jensen Huang’s upcoming speech at CES 2025. Investors are particularly eager for updates on Nvidia’s next-generation Rubin GPU, which is expected to have major implications for AI and graphics technology. Wall Street analysts are also bullish on Nvidia, with Bernstein reaffirming a Buy rating and highlighting the company as a top AI pick.

Positive Developments Impacting Nvidia’s Stock

• Foxconn’s Strong Performance: Taiwan’s Foxconn reported strong fourth-quarter results, partly due to the growing demand for AI servers. This could be another positive indicator for Nvidia, which supplies chips critical to AI infrastructure.
• Microsoft’s Data Center Investment: Microsoft’s announcement to invest $80 billion in global data centers in 2025 is expected to boost demand for AI chips. As a key supplier of AI hardware, Nvidia is poised to benefit from this increased demand.

These developments collectively suggest that 2025 could be a strong year for Nvidia, bolstered by the ongoing AI boom and expanding market for advanced GPUs.

Is Now the Time to Buy Nvidia?

While Nvidia’s shares surged today, they later cooled down to $151.69, a 4.9% gain from the previous close. Over the past year, Nvidia’s shares have shown significant volatility, with 23 moves greater than 5%. This means today’s movement, while meaningful, is not likely to drastically alter the market’s perception of Nvidia’s long-term potential.

Recent Performance Highlights

• Impressive Quarterly Performance: About 11 months ago, Nvidia gained 15.5% after reporting strong fourth-quarter results. The company posted revenue growth of 265% year-on-year, largely driven by the data center segment, which saw a staggering 409% year-over-year increase. AI-related applications contributed significantly to the revenue boost, particularly for generative AI and large language models (LLMs).
• Strong 2025 Outlook: Nvidia’s guidance for the upcoming quarter suggests continued growth, with expectations for revenue, gross margin, and operating profit exceeding analysts’ forecasts. This outlook is reinforced by expected growth in data centers and professional visualization, helping to offset seasonal declines in gaming revenue.
• Stock Performance: Nvidia has gained 9.7% year-to-date, reaching a new 52-week high of $151.69 per share. Those who invested $1,000 in Nvidia five years ago would see an investment now worth $25,595, reflecting the company’s tremendous growth.

Conclusion: Is Nvidia a Good Investment Now?

While Nvidia’s stock is at an all-time high, driven by its leadership in AI and strong fundamentals, its shares have been very volatile. For those considering an investment, it’s important to weigh Nvidia’s strong growth prospects—especially in the AI space—against its historical volatility. Analysts remain optimistic about Nvidia’s future, with AI continuing to drive demand for its products.

However, if you’re seeking lesser-known stocks benefiting from AI’s rise, other opportunities in the semiconductor space might be worth exploring, as Nvidia and AMD are already trading near their highs.

Overall, for long-term investors, Nvidia’s market position in AI and GPU technology suggests that it could continue to be a strong performer, but be prepared for potential fluctuations in the stock price due to its volatility.