The Nvidia stock has established itself as one of the biggest winners on the US stock market in recent years, especially due to the boom in artificial intelligence (AI). In 2024, Nvidia was among the top gainers, with a price increase of over 170 percent, bringing the company’s market capitalization to over 3 trillion US dollars. This development reflects the strong confidence of investors in the technology sector, particularly in the AI technologies that Nvidia dominates.
Current Market Situation and Forecasts
Despite a price drop of about 20 percent in 2025, Nvidia stock remains attractive to investors. Many analysts see further growth potential, particularly due to new AI and chip technologies. Some experts even expect a short-term trend reversal, which could be triggered by events such as the GPU Technology Conference (GTC). The average price forecast for 2025 stands at about 174.81 USD, representing a 45 percent increase from the current price.
Growth Drivers and Challenges
The AI boom is a central growth driver for Nvidia. The company benefits greatly from the demand for its GPUs, which are essential for modern AI models. However, there are also challenges, such as increasing competition from China and geopolitical uncertainties that could weigh on the stock price.
Dividends and Valuation
Nvidia pays dividends, which, however, are relatively unattractive for dividend strategies with a yield of less than 1 percent. Historically, the stock’s valuation is high, but many analysts see it as justified as long as growth in the AI sector continues.
Future Prospects
Further growth is expected for 2025 and beyond, especially if Nvidia can maintain its market leadership in the AI field. A potential stock split could further increase the stock’s attractiveness. Experts are confident that Nvidia is well-positioned to benefit from ongoing AI demand, even in a volatile market environment.
Overall, Nvidia stock remains an exciting investment that offers both short-term and long-term opportunities. Capital investors should closely monitor developments in the AI sector and Nvidia’s strategic moves to capitalize on the best entry points.