Author:
Source
As we enter the final quarter of 2024, some investors might be thinking about how they want to position their portfolio heading into 2025. This includes assessing winners and losers, and if you bought Nvidia (NASDAQ: NVDA) stock at the start of the year, you’re sitting on some nice gains.
With the stock rising around 150% so far in 2024, investors would be forgiven for thinking that it couldn’t rise any higher. However, some hints on other companies’ conference calls indicate that 2025 will be just as good a year for the company as 2024 has been. The question is, will the stock see the same benefit?
Nvidia’s incredible rise has been tied to the artificial intelligence (AI) arms race. Its primary product is the graphics processing unit (GPU), which can be used to perform multiple calculations in parallel. Additionally, companies don’t just buy one or two of these units. Instead, they buy them by the thousands. This gives AI researchers ridiculous computing power and allows them to train AI models quickly.