Nvidia Stock: Up Over 900% Since 2023 and Still a Screaming Buy
Since January 2023, Nvidia is up an amazing 906% from the year's beginning and continues to rank among the decade's best stocks. Currently close to its all-time high, this parabolic growth can make some investors fearful of giving up too much equity and ask, "How much further can it go? "anchoring effect," an emotion that usually leads investors to pass up opportunities because they feel the stock is "too pricey" due to past performance. But for Nvidia, its growth story isn't even close to the starting line yet.
This unprecedented success of Nvidia is directly linked to the acceleration of artificial intelligence. Adoption of AI has increased demand for Nvidia's industry-leading GPUs. Graphics processing units, for example, can process the very large parallel calculations needed to train AI models. In fact, these chips have become the foundation for AI infrastructure, and tech giants and hyperscalers, including Meta Platforms, Microsoft, and Google, install them in data centers.It has thousands of working GPUs for making complex AI models, and this is made in the computing cluster running on Nvidia GPU; AI hyperscalers are immense, and even though AI infrastructure build out has been pretty massive lately, it really is just getting started. Warnings from all industries on placing potential increases in AI capex in the years 2025 and following are issued by companies.
All leading cloud computing infrastructures, namely, Amazon Web Services, Microsoft Azure, and Google Cloud, are expected to invest way more in 2025; there is enough allocation of money set aside for that. That essentially translates into fabulous demand from the future for the GPU by Nvidia.
Meta's AI Spending Plans: As part of similar strategies embraced by hyperscalers, Meta Platforms filed a Q3 earnings release that underscored its interest in AI.
Chip Manufacturing Trends: The largest chip supplier to Nvidia, TSMC, has forecasted its revenue from AI-related chips to double in 2025. That alone speaks to a strong demand chain for the product from Nvidia.
While everyone knows that Nvidia dominates the GPUs, the company is strategically expanding into complementary areas to further strengthen its leadership position:
Omniverse and Digital Twins: Nvidia's Omniverse platform enables advanced simulations and virtual environments, unlocking opportunities in industries such as manufacturing, automotive, and gaming.
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