What if I told you that one company is powering the future of artificial intelligence (AI), self-driving cars, and even the next generation of gaming? Well, that company is Nvidia, and it’s not just a tech giant, it’s the backbone of the AI revolution. Nvidia is best known for its graphics processing units (GPUs), the high-powered chips that make video games look realistic and fuels some of the most advanced AI models today. While many people associate Nvidia with gaming, its influence stretches far beyond that. Its GPUs are used in AI research, self-driving cars, high-performance computing, and data centers that power demanding services and research. Nvidia's chips are the driving force behind AI models like ChatGPT.
(Nvidia CEO Jensen Huang)
In 2024, Nvidia’s stock rose an astonishing 171.2% making it one of the best-performing stocks of the year, according to Nasdaq (Nasdaq, 2024). This incredible growth was driven by the increased global demand got AI, and Nvidia’s dominance in supplying the chips that make it all possible. The reason behind Nvidia’s massive success last year was simple; AI is booming, and Nvidia is at the heart of it. As companies rushed to develop AI models like ChatGPT, they needed the most powerful chips available. Nvidia’s H100 AI GPUs became the gold standard, widely used by tech giants like Google, Microsoft, Amazon, and Meta. This led to record-breaking revenue of $35.1 billion in Q3 of fiscal 2025, a 94% increase from the previous year, according to Nvidia’s financial reports (Nvidia News, 2025). As a result, Nvidia’s stock price grew to a high of $149.43 at the start of January, 2025. Moreover, Nvidia’s market share in AI chips reached an estimated 90%, highlighting its dominance in the industry and driving stock prices in 2024.
Despite its massive success, Nvidia’s stock took a huge hit in early 2025, losing nearly $600 billion in market value in a single day. The sudden drop was largely due to fears of new competition, particularly DeepSeek, a Chinese AI startup that introduced a new advanced but cheaper AI model capable of running on non-Nvidia hardware. DeepSeek’s mode, which runs on chips made by AMD and other Nvidia competitors, raised concerns that Nvidia’s monopoly could be weakening. As a result, investors panicked, thinking that Nvidia’s dominance might not be as secure as it seemed. This fear led to rapid sell off, causing the stock price to plummet to a low of $118.42 at the end of January, 2025. However, these concerns turned out to be an overreaction. While DeepSeek’s AI model was impressive, it lacked three key factors that make Nvidia unbeatable. First, it lacked a software ecosystem like Nvidia’s that is optimized, reliable, and widely supported. Second, it did not have industry trust and connections with major companies. Lastly, Nvidia’s GPUs proved to be the fastest and most efficient for AI. DeepSeek just couldn’t match the raw power and speed of Nvidia’s hardware. As investors realized that DeepSeek wasn’t a serious threat to Nvidia, the stock quickly started recovering.
(Nvidia stock growth in from Feb 2024 - Feb 2025)
With fears over DeepSeek fading, Nvidia’s stock began to climb again. Barron’s reporter Adam Clark confirmed that demand for Nvidia’s AI chips remained strong, and the company's latest earning assured investors that business was still booming (Clark, 2025). As of mid February, 2025, Nvidia’s stock has rebounded to $138.85. Moreover, MarketWatch analysts predict another 30% increase this year (MarketWatch, 2025). There are several reasons why Nvidia’s stock is expected to continue rising. Firstly, AI demand is growing faster than ever, from self-driving cars to healthcare, it is transforming every industry. And Nvidia’s chips remain the go-to for developers. Secondly, Nvidia is expanding into new markets by investing in robotics, cloud computing, and edge AI, creating new opportunities for revenue. Thirdly, Nvidia has partnerships with major tech giants that are becoming increasingly reliant on their hardware. Lastly, Nvidia frequently launches new products that set new industry standards and create hype for its stocks.
Should you invest in Nvidia? Nvidia is at the center of one of the biggest technological revolutions of our time. The AI boom is just getting started, and Nvidia remains the undisputed leader in AI hardware. Furthermore, MarketWatch analysts project Nvidia’s revenue to grow by 38.5% annually from 2024 to 2026, making it one of the best performing tech stocks of the decade (MarketWatch, 2025). I myself purchased three shares of Nvidia in June of 2024. Despite the drop in January 2024, Nvidia’s continued growth has allowed me to see a total gain of over 10% with these returns expected to continue increasing. Learn more about investing as a teen in Teen Investing 101: How To Start Building Wealth Before 18. Nvidia is a company with a proven track record, cutting-edge technology, and enormous future potential. Therefore, whether you're an avid investor or interested in purchasing your first stock, Nvidia is one of the best investment opportunities of 2025 and beyond.
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