Nvidia’s (NASDAQ: NVDA) growth in the last 24 months ensured that the stock has been a definitive buy in late 2022 and late 2023, as it would have enabled investors to benefit from subsequent rallies fully.
NVDA shares’ remarkable performance through 2024 also indicates that, as the markets move toward 2025, the semiconductor giant is once more well worth buying.
Indeed, though Nvidia’s stock lost momentum following the June 10-for-1 stock split, more recent trading saw it rebuild the upsurge.
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With NVDA price today, at press time on November 7, standing at $145.61, the chipmaker’s shares are 202.30% in the green year-to-date (YTD), and Donald Trump’s victory in the presidential election even enabled them to surge 4.07% in the last 24 hours.
Why Nvidia stock is not as no-brain a buy as you might think
The historical performance and momentum point toward Nvidia being a no-brain hold for those who hold a significant stake, and an easy buy for those who do not, or wish to increase their position.
Still, 2025 might bring a slowdown for the semiconductor giant as – beyond the possibility of a correction that would align valuation more closely with actual revenue – it could suffer some headwinds should Trump’s policies disrupt global supply chains.
Wedbush’s Dan Ives, for example, opined shortly before the election that companies like Nvidia, Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL) could suffer if the Republican candidate wins precisely due to the danger of a trade war triggered by tariff policies.
On the other hand, Ives might also reassess his view to find the positives of a Trump presidency for NVDA – just like he did for Tesla – and it appears more broadly that the optimistic view for Nvidia has more backing than the bearish approach.
Something akin to such an analysis was already offered by Goldman Sachs (NYSE: GS). The banking giant reaffirmed Nvidia stock as a ‘buy’ and reiterated its 12-month price target of $150. However, Goldman Sachsalso warned of potential headwinds due to possible lowering of artificial intelligence (AI) spending, demand for gaming setups, and trade or supply chain disruptions.
Why not buying NVDA may be riskier than buying
The vast majority of Wall Street experts are highly bullish about the semiconductor giant. Specifically, per the data retrieved from TradingView on November 7, 51 analysts consider NVDA stock a ‘Strong Buy’, and 9 believe it is a ‘Buy.’
Further strengthening the case, there are no sell ratings, and there are only 5 experts who are neutral about Nvidia shares.
However, the discrepancy between NVDA stock YTD chart – which shows a 202.30% rise – and the 12-month price forecast – which predicts on average a 3.67% upside – provides a hint of uncertainty ahead.
The AI stock rally of recent years has been unlike most other industry surges before – particularly given the fact many of the biggest gainers were already blue-chip companies – meaning there remain some doubts if the historically used paradigms remain applicable.
Finally, it is relatively safe to say that Nvidia stock remains a ‘Buy’ in late 2024 and will stay as such at least until January 20. As long as there are no unprecedented market or geopolitical shocks, the recent Trump victory rally suggests Nvidia shares may continue to climb as the new administration takes office.
Featured image via Shutterstock
