Will Nvidia Stock Keep Dropping in 2025?

With shares down 20% year to date, Nvidia (NASDAQ: NVDA) has been off to a bad start in 2025, even though its chip business continues to fire on all cylinders. Is the market predicting an end to the generative artificial intelligence (AI) hype cycle? Let's dig deeper to determine what the next nine months might have in store for the industry's leader. When a company's stock starts falling, it's easy to blame poor operational performance. But that hasn't been the case for Nvidia. Fourth-quarter earnings show a business that is still firing on all cylinders. Revenue soared 78% from a year ago to a quarterly record of $39.3 billion, driven by strength in the company's data center segment, where it makes advanced AI chips for running and training large language models (LLMs).While Nvidia started as a gaming chip designer, expensive data center hardware has become its bread and butter. Its latest AI chip, Blackwell, is estimated to cost a whopping $30,000 to $50,000 per unit. But these new products boast dramatic improvements in power and efficiency compared to their predecessors, potentially allowing clients to save money using them. According to CEO Jensen Huang, demand is "insane."Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool