Nvidia's stock performance has been remarkable, fueled by the surge in AI investments. The company's next-generation AI chip platform, Blackwell, is expected to be a key driver of future growth. Investors are closely watching how this transition unfolds and its impact on revenue, margins, and supply chain.
The dramatic ascent of artificial intelligence giant Nvidia has sustained for two years. The stock's climb in year three depends on Blackwell , its next-generation AI chip platform. Year-to-date performance: up 174% Forward price-to-earnings multiple: 32.7 versus a five-year average of 40.4 Our rating: Buy-equivalent 1 Our price target: $165 a share NVDA YTD mountain Nvidia YTD '24 look back Nvidia followed up its remarkable 239% leap in 2023 with an encore performance.
It all boils down to the fact that we continued to see massive investments into AI across the tech industry, leading to blistering revenue and earnings growth for a second straight year. Key customers including Microsoft , Google parent Alphabet and Amazon shelled out billions of dollars on AI-related capital expenditures, with much of the money making its way into Nvidia's coffers. There were patches of volatility — in fact, the stock saw multiple drawdowns of roughly 20% or more — but eventually, the buyers returned as optimism on Nvidia's future and AI adoption more broadly won out. December has brought more volatility, with the stock falling into correction territory before bouncing yet again. As of Friday, shares were up roughly 6% from their most recent low close of $128.91 on Dec. 18. '25 look ahead In the new year, Nvidia will be ramping up the rollout of its next-gen chip platform Blackwell, the successor to its wildly popular Hopper architecture. Investors will be closely watching how this transition unfolds — are there any hiccups that delay when revenue is recognized? How will gross margins hold up during this process? Nvidia has said demand for Blackwell is expected to 'exceed supply for several quarters' in its fiscal year that starts in February, so clues on when this mismatch is resolved will be in focus, too. Some of Nvidia's burgeoning opportunities — specifically, its software business and partnerships with countries outside the U.S
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