Nvidia stock surges by 15% in just 19 days.

The Nvidia (NVDA) stock is currently trending upward, with a 15% increase in just 19 days. This surge comes after a six-month period of zero returns for the company’s stock, leaving many investors wondering what has caused this sudden change.

Table of Contents

Foxconn’s Fourth Quarter Result Drives Excitement

One key factor driving the excitement around Nvidia is Foxconn’s fourth quarter result. In its latest earnings report, Nvidia announced record revenue, with a year-over-year (YoY) growth of 15.17% and a quarter-over-quarter (QoQ) increase of 15.02%. The primary reason behind this significant growth lies within the Cloud and Networking Products segment, which is mainly driven by products sold to Nvidia.

AI-Driven Revenue Increase Fuels Speculation

The AI-driven revenue increase has sparked speculation about Nvidia’s quarterly results, leading to a surge in stock prices. Analysts expect the company to continue its upward trend, with many predicting significant growth in the coming weeks and months.

CEO Jensen Huang’s Upcoming Keynote at CES 2025

Another major factor contributing to the hype is CEO Jensen Huang’s upcoming keynote address at the Consumer Electronics Show (CES) 2025. As one of the most influential figures in the tech industry, Huang’s words will be closely watched by investors and analysts alike.

Nvidia’s Role in the AI Revolution

As the leader in AI technology, Nvidia’s role in driving the speed of this revolution is undeniable. Just as Federal Reserve Chair Jerome Powell’s statements have a significant impact on America’s economic well-being, Huang’s words will be analyzed to gauge the direction and pace of the AI revolution.

Analysts’ Predictions: Tech Stocks to Continue Dominating

Wedbush analyst Dan Ives expects tech stocks to continue dominating in 2025, driven by incremental capital expenditure on AI technologies over the next three years. Bank of America (BofA) has also revealed that Nvidia was the most widely owned stock by active fund managers in the US and the most beloved stock among retail investors.

Nvidia’s Record-Breaking GPUs: A Game-Changer for AI Development

The release of Blackwell GPUs, the most powerful GPUs Nvidia has ever built, is expected to accelerate the development of future AI technologies. With 12 months of orders already pre-booked, Nvidia is poised to generate over $200 billion from the sale of these GPUs alone.

Market Sentiment and Price Target

The market sentiment is starting to price in all the great things this company is expected to do in 2025. BofA has a $190 price target on the stock, which represents a further 27% upside from current levels.

Nvidia’s Position Among Hedge Funds

As per our latest list of the 30 Most Popular Stocks Among Hedge Funds, Nvidia holds the fifth position. With 193 hedge fund portfolios holding NVDA at the end of the third quarter, compared to 179 in the previous quarter, it is clear that investors are taking notice.

Conclusion: A Promising AI Stock with Room for Growth

While Nvidia is an excellent investment opportunity, our conviction lies in believing that some AI stocks hold greater promise for delivering higher returns within a shorter timeframe. If you’re looking for an AI stock that trades at less than 5 times its earnings, check out our report on the cheapest AI stock.