Nvidia and Meta Fuel Optimism for 2025 Stock Performance

As Nvidia's stock soars 150% in 2024, analysts anticipate continued growth in 2025, driven by increased GPU demand from AI innovations, particularly from Meta Platforms. This positions Nvidia as a promising investment for the future.

Date: 08-10-2024

AI Rating: 7

The report indicates that Nvidia has experienced significant stock gains, up approximately 150% in 2024. This dramatic increase is attributed to the booming demand for GPUs amid the AI arms race. Companies like Meta Platforms are planning to enhance their GPU acquisitions, which would directly benefit Nvidia's revenue streams.

In its recent earnings release, Meta mentioned that its infrastructure costs are expected to rise significantly in 2025, correlating with its goal to improve AI models. This indicates a strong commitment to increasing computing power, positioning Nvidia favorably as a primary supplier of these GPUs.

Nvidia's upcoming technology, Blackwell, is expected to deliver 3 to 5 times more AI throughput. Management reports that demand for Blackwell exceeds supply, indicating robust interest in their new product line. This could lead to substantial revenue growth for Nvidia in the foreseeable future.

The report also cites Wall Street analysts predicting a growth in Nvidia's fiscal year 2026 revenue by 42% and an increase in earnings per share (EPS) from $2.84 in fiscal 2025 to $4.02 in fiscal 2026. This suggests strong financial performance and profit potential.

Given these developments, Nvidia's outlook appears positive. If the demand for GPUs continues, Nvidia could maintain or even enhance its market position, making it an attractive investment for 2025.

Stocks: NASDAQ:NVDA NASDAQ:META