nvidia stock soars on ai chip demand
Mountain View, Wednesday, 25 December 2024.
Nvidia’s stock has made a remarkable recovery, driven by a surge in demand for AI chips. This demand underscores Nvidia’s pivotal role in the semiconductor market as global interest in AI technologies grows. The company’s stock has risen over 170% in 2024, reflecting its record-breaking year. With Nvidia holding a dominant 90% market share in the GPU sector, essential for AI applications, investors remain optimistic. The company’s Q3 earnings exceeded expectations, with adjusted earnings of $0.81 per share on $35.08 billion in sales, doubling its performance from the previous year. Analysts are positive about Nvidia’s potential for continued growth, especially with upcoming product launches like the Blackwell GPU platform. Strategic collaborations and new product announcements anticipated at CES 2025 could further propel Nvidia’s stock. As Nvidia continues to lead in AI innovation, its stock remains a key focus for investors.
Market dominance and recent performance
Nvidia’s market position has strengthened significantly, with its stock experiencing a remarkable 177.3% gain in 2024 [1]. The company’s recent performance shows strong momentum, with the stock rising 0.8% on December 24, marking its fourth consecutive winning session [1]. Third-quarter financial results exceeded Wall Street expectations, with adjusted earnings reaching $0.81 per share on $35.08 billion in sales, compared to analyst projections of $0.75 per share on $33.17 billion [1].
Leadership in AI chip sector
Nvidia’s commanding 90% market share in the GPU sector has positioned it as the undisputed leader in AI chip technology [2]. The company’s revenue growth has been extraordinary, with the first nine months of fiscal 2025 reaching $91.2 billion, representing a 135% increase year-over-year [2]. This growth trajectory is supported by increasing demand across various sectors, including healthcare, automotive, and finance [6].
Future growth catalysts
The upcoming launch of Nvidia’s Blackwell GPU platform is expected to drive further growth [2]. The company plans to showcase new innovations at CES 2025, including the GeForce RTX 50 series GPUs, which promise up to 70% faster speeds than previous models [2]. Strategic partnerships with major manufacturers like Acer, Asus, and Dell are set to be highlighted at the event [2]. Morgan Stanley has designated Nvidia as a top pick for 2025, emphasizing its leadership in AI chip technology [6].