Nvidia stock expected to continue strong growth due to AI leadership and tax cuts.

From Nasdaq: 2024-12-02 05:15:00

Nvidia (NASDAQ: NVDA) has been the best performing stock in the S&P 500, with an 845% increase in share price driven by high demand for its GPUs. It is expected to continue delivering strong returns in 2025 due to its leadership in AI accelerators and the launch of its Blackwell GPU, which has already sold out for the next 12 months.

President-elect Donald Trump plans to cut the corporate tax rate to 15%, potentially boosting profit margins for companies like Nvidia. The company has already repurchased $26 billion in stock, positioning it to benefit further from any tax cuts. Analysts believe that lower taxes could accelerate Nvidia’s earnings growth and drive its stock higher.

Despite its significant growth, Nvidia’s stock remains undervalued compared to other AI companies. With an expected 50% earnings growth, a PEG ratio just above 1, and a current share price of $138, Nvidia is considered inexpensive and could offer market-beating returns in the coming year.

Investors who missed out on previous stock opportunities can still benefit from Nvidia, as the company is expected to continue its strong performance. The “Double Down” stock recommendation for Nvidia could lead to significant returns, similar to past successes with companies like Apple and Netflix. Don’t miss this second chance at a potentially lucrative opportunity with Nvidia.



Read more at Nasdaq: Prediction: Nvidia Stock Will Soar in 2025, and Not Just Because the AI Boom Is Building Steam