
This year has been one of milestones for top tech company Nvidia (NASDAQ: NVDA). The artificial intelligence (AI) chip leader delivered record earnings quarter after quarter as demand for its products and services soared. Thanks to a triple-digit share price gain, the company even temporarily became the largest by market value — surpassing Apple. Nvidia also won a spot among the elite, with an invitation to join the Dow Jones Industrial Average, and the stock became the best performer on the benchmark for the year.
It’s clear that this AI powerhouse has been firing on all cylinders. But the string of milestones isn’t over. The company just reached yet another one, worth about $30 billion and showing exactly how important this stock is to investors right now. Let’s take a closer look and consider whether Nvidia stock is a buy for 2025.
Image source: Getty Images.
First, though, a quick summary of the Nvidia story so far. The company makes the world’s top-performing graphics processing units (GPUs), a type of chip that mainly powered video games in its earlier days. But the GPU’s ability to process many tasks at once made it a natural for other areas too. That’s how and why the GPU expanded into AI. In fact, this chip plays a central role in crucial AI tasks — such as the training and inferencing of large language models.
As a result, Nvidia’s revenue has exploded higher in recent years. For example, in the latest quarter, revenue came in at a record of more than $35 billion — higher than a full year of revenue just two years ago. Importantly, the company is also highly profitable on sales, with a gross margin of more than 70% in recent quarters.
Nvidia even expects gross margin to remain above 70% during the launch of its Blackwell architecture. This illustrates the strength of the company’s cost structure — because launches, involving new logistics and manufacturing processes, generally weigh on profit.
As mentioned above, this tech giant has reached milestone after milestone over the past year, and now it’s finishing up 2024 with yet another…
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