NVIDIA Corporation has been a dominant force in the tech industry, driven by the increasing demand for artificial intelligence (AI) solutions. The company’s high-performance graphics processing units (GPUs) have become essential for data centers, robotics, and autonomous vehicles. In Q3 2024, NVIDIA reported a record revenue of $35.1 billion, a 94% year-over-year increase.
The data center segment alone surged 112% to $30.8 billion. NVIDIA’s GPU revenue has grown 67% annually over the past three years, fueled by the demand for computing power due to AI advancements. NVIDIA holds a 90% market share as a supplier of computing power and recently introduced its GeForce RTX 50 series graphics cards.
These cards offer significant performance improvements and advanced AI technologies.
Nvidia’s Q3 2024 financial highlights
Analysts are optimistic about NVIDIA’s stock performance.
Dan Ives from Wedbush expects continued tech dominance driven by AI investments. Bank of America maintains a $190 price target, suggesting a 27% upside. The release of Blackwell GPUs, with 12 months of orders already secured, supports this optimism.
Manole Capital Management noted that NVIDIA more than tripled in value over the past year. In their Q3 2024 investor letter, they stated, “NVIDIA Corporation (NASDAQ:NVDA) was the largest gainer in the S&P 500 last year and has more than tripled in value over the last year.”
However, some believe that other AI stocks may offer higher returns within a shorter time frame, despite trading at lower valuations. As 2025 progresses, NVIDIA remains one of the top NASDAQ stocks to watch.
The company’s strong position in the AI market and impressive financial performance make it an attractive option for investors looking to capitalize on the AI revolution.
Future Outlook and Investor Sentiment
Looking ahead, NVIDIA’s position in the AI sector remains robust, with continuous innovation driving its growth. As AI technologies continue to evolve, NVIDIA is well-positioned to maintain its dominance in providing essential computing power.
The company’s strategic focus on GPUs and AI solutions ensures that it remains at the forefront of emerging technologies. However, potential investors should also consider the risks of a highly competitive market. While NVIDIA shows tremendous promise, alternative AI stocks could provide faster returns, making it important to stay informed about market trends as 2025 unfolds.
