NVIDIA
NVIDIA is a leading tech company that designs and manufactures Graphic Processing Units. For many years the company was best known for its GeForce graphic cards among design professionals and gamers, but more recently the company has positioned itself as the company at the centre of AI supercomputing and AI applications. Its incredible rise reflects the success of its approach, as NVIDIA serves both corporations and individuals.
THE AI INDUSTRY AND ITS MAJOR PLAYERS
The AI industry is seeing huge growth, which is having significant implications for multiple sectors. AI is no longer looked at in terms of only impacting the technology sector: it’s thought that AI will transform both the way we work and our lives in multiple ways. The global AI market is currently worth at least $300 bln and by 2032 it could be worth as much as $2.74 trillion, according to industry reports. Leading global companies deeply involved in AI development include NVIDIA, Microsoft, Google, Amazon, Samsung, Facebook and Tesla.
NVIDIA: CURRENTLY ESSENTIAL TO THE DEVELOPMENT OF MAJOR AI COMPANIES
NVIDIA is at the centre of AI development because it provides the hardware (the chips) to all the major companies. The market for AI chips has seen rapid growth and is expected to reach $44.3 billion by next year. Companies like Apple, Microsoft, Google and Amazon have all invested millions in creating data centers that require AI chips to support machine learning applications and vastly increase data processing capabilities to drive innovation among those AI-linked companies.
NVIDIA IN 2024
NVIDIA has seen another stunning year of growth and has dominated the AI chip sector despite the challenge of smaller rivals such as AMD, Intel, and ARM. The demand for AI-related products led to record-breaking revenues for the company. The earnings reports of the company this year highlight strong performance, with impressive earnings and revenue expectations. Its partnerships and deals to provide companies like Microsoft with chips, have played a significant role in this success. However, strong performance isn't solely based on current results; NVIDIA has increased the cycle of new chips in order to safeguard its market position and keep competitors from gaining market share.
NVIDIA’s STOCK PRICE MOVEMENT in 2024: 178% UP
NVIDIA’s stock price jumped by 178% in 2024, which makes it the third-best performer on the S&P 500 and signals that there is little sign of the stock slowing down from the gains of previous years.
NVIDIA IN 2025: WILL IT KEEP DOMINATING OR FACE POSSIBLE CHALLENGES?
The company will kick off 2025 by participating in the Consumer Electronics Show (January 7 – January 11). CEO Huang will speak at the event on January 7th, and the company is expected to unveil new Blackwell graphics cards. NVIDIA could reveal more about its plans for 2025, in terms of AI development in its chips, or even its plans for 2026 and beyond.
The company will also release special Blackwell chips that can be exported to Saudi Arabia this year (which address security concerns) and is focusing on its next generation AI chips called Rubin, which will be ready for release next year. The company has also received massive orders for the AI-enhanced Blackwell chips from companies like Microsoft.
On the other hand, NVIDIA’s current pace of success depends on global economic growth continuing: in the event of economic slowdown, companies could scale back on investment in AI. Other companies in the sector, such as AMD, ARM, and INTEL are also attempting to peel away some of its market share by developing their own AI chips.
However, investment banks remain confident that NVIDIA’s price will continue to rise, with Bank of America targeting $190 and Rosenblatt at $200. Most recently, Bank of America named NVIDIA as its Semiconductor stock pick for 2025: the message is that major banks expect further success from the company.
Conclusion –
NVIDIA’s 2024 performance solidified its position as a tech and AI powerhouse, and its increase in price reflects expectations that its market dominance will remain unchallenged for the foreseeable future. As 2025 begins, NVIDIA remains a key stock to watch, with its innovation and market leadership likely to continue driving the stock to potentially greater heights.