Nvidia's climb: can the AI giant sustain its momentum?

2025-06-09 nvidia

Santa Clara, Monday, 9 June 2025.
Nvidia’s stock is on the rise, driven by impressive earnings and high demand. The artificial intelligence and data center markets are key factors. Investors are watching closely, but one expert believes Broadcom could surpass Nvidia. The stock’s performance is a central point for portfolio managers. Nvidia’s strategic moves and market position are vital for future expansion. Will Nvidia maintain its upward trajectory, or will competition and market shifts alter its course?

Stock performance and market data

Nvidia’s stock closed at $141.72 on June 7, 2025, in Taipei time, representing a 1.236 1.24% increase [4]. The stock’s price ranged from a low of $86.62 to a high of $153.13 over the past year [4][7]. The company’s market capitalization stands at $3.456 trillion [4]. Nvidia’s revenue for the trailing twelve months is $148.52 billion, with earnings reaching $76.77 billion [7]. The price-to-earnings ratio is 45.72, reflecting investor expectations for future earnings growth [4]. The next earnings date is projected for August 27, 2025 [7].

revenue streams and growth factors

Nvidia operates through two primary segments: graphics processing unit (GPU) and compute & networking [3]. The graphics segment includes GeForce GPUs for gaming and PCs, along with services like GeForce NOW [3]. The compute & networking segment features data center accelerated computing platforms and networking platforms [3]. Nvidia’s data center business experienced substantial growth, increasing 73% year-over-year and accounting for 89% of the company’s revenue [6]. Revenue from gaming and AI PC segments also saw a 48% increase, reaching a record $3.8 billion [6].

competitive landscape and challenges

Nvidia faces increasing competition in the AI accelerator chip market [6]. Export controls have also closed off the $50 billion AI chip market in China to Nvidia [6]. Despite these challenges, analysts anticipate Nvidia’s earnings will increase by 43% in the current fiscal year, reaching $4.28 per share [6]. One expert has suggested that Broadcom could potentially surpass Nvidia [1]. Nvidia is actively investing in AI infrastructure across various countries, including Japan, India, and the UK [6].

strategic initiatives and future outlook

Nvidia is involved in major projects aimed at reshaping AI, including collaborations with Dell [1]. CEO Jensen Huang highlighted Nvidia’s AI processors in Nintendo’s new Switch 2 gaming console [8]. These processors are designed to enhance gameplay in real time [8]. Nvidia also holds a stake in CoreWeave, a company leasing data center space and utilizing 250,000 Nvidia chips [8]. Assuming a discounted forward earnings multiple of 25 in five years, Nvidia’s stock price could reach approximately $237 [6].

Bronnen

NVIDIA stock earnings growth