#2 - NVIDIA (NASDAQ:NVDA)
Another mega-cap name that investors can go back to the well with is NVIDIA Corporation (NASDAQ: NVDA). The company recently launched its Blackwell chip and announced a robust backlog for the chips, which will propel revenue and earnings growth throughout 2025.
The challenge for NVIDIA in 2025 is competition from other companies, such as Advanced Micro Devices (NASDAQ: AMD). Customers are looking for alternatives to NVDA, and AMD appears to be in a position to be a worthy competitor. However, NVIDIA still has a lead with Blackwell, and it will take some time to whittle down the company’s 80+% market share.
That’s why NVDA still looks like a stock to buy even with a premium valuation, including a forward P/E ratio of over 50x earnings. The company also has an extreme 114% ROE.
Should investors expect another year of 162% stock price growth? No, but there’s no reason to believe that NVIDIA won’t be able to match or exceed the performance of the S&P 500 in 2025.
About NVIDIA
NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.
Read More - Current Price
- $137.01
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 40 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $164.15 (19.8% Upside)
