nvidia stock soars as demand for ai grows
Santa Clara, Friday, 3 January 2025.
NVIDIA’s stock has made a significant comeback, leading the Magnificent Seven stocks into the new year with impressive gains. The company’s shares surged by 4.4% on January 2, 2025, as it aimed to overcome the 50-day line resistance level, indicating strong market momentum. This rally is driven by increased demand for AI technologies and positive analyst expectations. NVIDIA’s recent performance has been stellar, with a 171.2% gain throughout 2024, far outpacing its peers like Alphabet and Amazon. The company’s financial results also exceeded Wall Street expectations, reporting adjusted earnings of 81 cents per share on sales of $35.08 billion for the quarter ending October 27, 2024. As NVIDIA continues to lead in the AI chip market, analysts predict sustained growth. The company is poised to capitalize on its market position, with future strategies likely discussed at the CES 2025 event.
Market leadership strengthens
NVIDIA’s market dominance continues to grow as a Wall Street investment bank confirmed the company’s sustainable lead in the AI chip market [2]. The tech giant’s recent inclusion in the Dow Jones Industrial Average, replacing Intel in November 2024, further cements its position as a market leader [5]. With a valuation exceeding $3 trillion, NVIDIA now competes directly with Apple as one of the world’s most valuable companies [5].
Strong financial performance
The company’s financial results demonstrate robust growth, surpassing analyst expectations with adjusted earnings of 81 cents per share on sales of $35.08 billion for the quarter ended October 27, 2024 [1]. This performance exceeded Wall Street’s projected earnings of 75 cents per share on sales of $33.17 billion [1]. The stock’s remarkable 171.2% gain in 2024 significantly outperformed other Magnificent Seven stocks [1].
Analyst optimism and future outlook
Morgan Stanley has designated NVIDIA as a top stock pick for 2025 [2], highlighting the company’s potential for continued growth. The company’s stock showed particular strength on January 3, 2025, as the Nasdaq rallied by 1.8% [2]. NVIDIA’s performance at the CES 2025 tech trade show, scheduled for January 2-5, 2025, is expected to showcase its latest AI innovations [2].