From Nasdaq: 2025-05-02 15:00:00

NVIDIA stock rose 2.5% on Thursday due to increased AI investments from Meta Platforms and Microsoft, boosting optimism. Both companies plan to spend billions on AI infrastructure, benefiting NVIDIA’s high-performance GPUs. The stock has pulled back 27% from its 52-week high, prompting investors to consider buying or holding.

Microsoft and Meta Platforms reaffirmed their massive capital expenditure plans for AI data centers, with over half directed toward U.S. operations. Meta Platforms raised its 2025 capital spending outlook to $64-$72 billion, focusing on data center expansion and AI infrastructure. NVIDIA’s chips, especially H100 and B100 GPUs, will see continued high demand.

NVIDIA remains at the forefront of the AI revolution, with data center revenues growing 93% year over year in Q4 of fiscal 2025. The company’s high-performance chips are essential for AI-driven workloads, cloud computing expansion, and enterprise AI adoption. Financially, NVIDIA’s revenues and EPS are on a strong growth trajectory, with analysts forecasting continued growth in the coming years.

While NVIDIA is a key player in the AI landscape, its valuation is considered high, with a Zacks Value Score of D. Despite trading at a higher Price/Sales ratio than the industry average, the stock’s overvaluation raises caution. Investors should consider the stock’s high valuation and potential for short-term volatility when deciding whether to buy, hold, or sell.

NVIDIA stock, while off its highs, remains strategically important in the evolving tech landscape due to the AI megatrend. However, its high valuation makes it susceptible to short-term market fluctuations. Holding the stock for now may be the prudent choice, as Meta Platforms and Microsoft’s AI investments signal continued demand for NVIDIA’s products.



Read more at Nasdaq: Should You Hold NVIDIA Stock as Meta & Microsoft Double Down on AI?