Nvidia stock has soared 200% in the last year. Will the AI front-runners be able to rack up even more wins in 2025 and beyond?
Nvidia (NVDA 4.45%) The stock posted a big jump in trading on Friday. The artificial intelligence (AI) leader’s stock ended the day up 4.5%. Meanwhile, the S&P 500 Index and the Nasdaq Composite Index rose 1.2% and 1.7%, respectively.
NVIDIA stock saw some bullish momentum in trading today following news about Microsoft’s planned AI infrastructure spending in 2025. Microsoft is the semiconductor specialist’s biggest customer, buying more advanced graphics processing units (GPUs) from it than any other major tech company. Following today’s gains, NVIDIA stock is now up 200% from where it has been trading over the past year.
Is Nvidia stock a buy in 2025?
The incredible rise in Nvidia stock naturally begs the question of whether investors can continue to reap big wins with the AI leader. Meanwhile, the company’s high-performance GPUs continue to be the foundation-level hardware that powers advanced AI applications, and the chip leader maintains a strong competitive position in this space.
Most analysts suggest the company has at least 80% market share in the fast-growing AI chip market. Depending on how you split the categories, some breakdowns show that Nvidia has well over 90% market share when it comes to the most important and profitable categories of the AI chip market.
With this market dominance in mind, Microsoft’s recent comments appear to be very bullish on Nvidia. Microsoft Vice Chairman and President Brad Smith said in a recent blog post that the company plans to invest about $80 billion in AI data centers this year. The software giant is expected to record approximately $53 billion in capital expenditures (CAPEX) in 2024, meaning its spending on AI infrastructure will increase by at least 51% in 2025. Given that 2024 capital spending includes spending in several other categories, AI data center investment growth could significantly exceed that level, with Nvidia expected to be the largest. likely to be the beneficiary of
While Nvidia’s stock outlook has become more speculative due to its strong share price appreciation and the historically cyclical nature of its business, Microsoft’s recent comments are a very bullish indicator. Nvidia stock continues to look like a buy for long-term investors, as there are signs that demand for hardware to build AI infrastructure is still growing rapidly.
Keith Noonan has no position in any stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends the following options: A long January 2026 $395 call on Microsoft and a short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
