Will Nvidia shares be bought, sold or held in 2025?

As of this writing, the stock has so far been less than 3%; nvidia‘s (NVDA) -4.05%)) The rocket ship rally has concluded. There are also many reasons why investors are more cautious about stocks.

Generation AI software is still very unprofitable. And reportedly, the emergence of cheaper open source rivals from China could undermine nvidia’s top customers Openai and Meta Platform. Let’s dig deeper into whether this tech giant’s stock is being bought, sold or held after 2025.

4th quarter revenues are on the horizon

Nvidia plans to report fourth quarter and full year revenues after the market closes February 26th. The report will provide investors with a clearer view of their growth outlook and the health of the AI ​​industry as they tackle challenges such as high spending and low profitability of software (Openai) in 2024 lost $5 billion).

Management is optimistic, deriving approximately $37.5 billion in revenue, representing a 70% year-on-year growth rate compared to previous year. This slows growth compared to the 265% revenue surge last year, but it’s impressive for the $3.4 trillion company.

For comparison, fellow tech giants Amazon It recorded a top-line growth of just 10% in the recently reported quarter.

Nvidia’s advantage depends on its ability to release new and improved items Graphic Processing Unit (GPU) To run and train AI models. These products cost a lot (their latest Blackwell chips are expected to cost between $30,000 and $40,000 per unit), but they save operational costs and energy compared to older chip designs It offers dramatic performance improvements such as providing.

How important is the threat from Deepseek?

Open Source Release Big language model (LLM) Called Deepseek R1, Nvidia’s growth paper shook. The Chinese app reportedly was developed for just $5.6 million using NVIDIA’s much more highly few H800 chips built to comply with US export restrictions to China Despite this, it is reportedly able to outperform industry leader ChatGPT in key tasks.

If a company can use less advanced chips to create cutting-edge LLMs, this could undermine Nvidia’s most advanced hardware market, and could damage its growth and margins. That said, there may be good news for Nvidia and its shareholders.

Image source: Getty Images.

First of all, Nvidia’s fourth quarter report includes data for the three months to close in January 2025. Deepseek’s R1 was released later last month of the period and probably doesn’t have a significant impact on guidance.

Additionally, experts have challenged some of Deepseek’s claims, with a report from research analysis firm Semianalysis estimated that hardware spending is over $500 million, rather than the developer’s claims. I’m doing it. The app is also facing a growing regulatory attention to data safety and has already been banned from the Korean app store due to privacy concerns.

Some of Nvidia’s biggest customers, including the meta platform, maintain their commitment to purchasing AI hardware. Meta has no plans to slow AI spending despite a potential threat from Deepseek. CEO Mark Zuckerberg plans to invest hundreds of billions of dollars in the industry over the long term.

Is Nvidia Buy, Sell, or Hold?

Deepseek does not appear to undermine Nvidia’s momentum in the fourth quarter or calendar year 2025. And the release of the New Blackwell AI chip will help the company maintain a rise in growth rate. At a forward price return rate (P/E) of 32, the stock remains affordable compared to its base.

That said, the stock still appears to be on hold instead of buying. DeepSeek doesn’t pop generic AI bubbles right away, but it’s a warning about vulnerabilities, especially since it can’t be adopted by top LLM developers like ChatGPT. Nvidia’s low ratings are attractive, but it makes sense given the speculative and dangerous nature of the industry.