Veteran fund manager reveals shocking Nvidia stock price target for 2025

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By any measure, 2024 was Nvidia's  (NVDA)  year.

The AI-chip superpower was the top performer in the so-called Magnificent Seven — a group that include such righteous tech names as Amazon  (AMZN) , Apple and Facebook parent Meta Platforms.

Related: Top analyst revisits Nvidia stock price target after correction slump

The chip colossus even temporarily deposed tech giant Apple  (AAPL)  as the world's most valuable company.

Nvidia was also the Big Kahuna on the Dow Jones Industrial Average this year, even though the Santa Clara, Calif., company joined the 30-company benchmark only in November.

Last month, Wedbush analysts described the artificial-intelligence revolution as “the biggest tech transformation in over 40 years."

"The start of this $2 trillion of AI spending over the next few years all starts with the godfather of AI, [Chief Executive Jensen Huang,] and Nvidia, as they are the only game in town with their chips the new gold and oil," the investment firm said.

The company beat Wall Street's third-quarter earnings and revenue expectations last month, with Chief Financial Officer Colette Kress telling analysts that "we continue to deliver incredible growth."

"All market platforms posted strong sequential and year-over-year growth, fueled by the adoption of Nvidia-accelerated computing and AI," Kress said.

Jensen Huang, co-founder and CEO of Nvidia, speaks during the Nvidia GPU Technology Conference in San Jose, Calif., in 2024. Nvidia was the Dow 30's top performer in 2024. (Photo: David Paul Morris/Bloomberg via Getty Images)Bloomberg/Getty Images
Jensen Huang, co-founder and CEO of Nvidia, speaks during the Nvidia GPU Technology Conference in San Jose, Calif., in 2024. Nvidia was the Dow 30's top performer in 2024. (Photo: David Paul Morris/Bloomberg via Getty Images)Bloomberg/Getty Images

Concern about competition

Kress told analysts that demand for Blackwell, the company's high-performance processor, is "staggering, and we are racing to scale supply to meet the incredible demand customers are placing on us."

Nvidia has hit some rough spots lately. Earlier this month an extended slump pushed the world's leading AI-chip maker into correction territory,

Related: Veteran fund manager delivers alarming S&P 500 forecast

Analysts have suggested that the decline was sparked by concern that AI spending was slowing down or that that business was spreading to the company’s competitors.

Some have pointed to the gains for rivals, such as Broadcom  (AVGO)  and Marvell Technology  (MRVL) , as evidence of increasing competition for Nvidia in the broader AI space. Those two companies have taking an increasing share of the market for application-specific integrated circuits, which are custom-designed chips made to perform specific tasks.

ASIC chips help giant providers of cloud-networking infrastructure and services, like Alphabet  (GOOGL) and Meta,  (META)  increase the speed and reliability with which they process information.