From Yahoo Finance: 2025-06-01 15:10:00

Nvidia’s stock has surged over the past five years, up more than 1,400%, thanks to its strong position in the artificial intelligence market. Despite concerns over growth and tariffs, Nvidia’s recent rebound suggests optimism for the future. The company’s high gross margin and profitability may lead to further stock gains in 2025.

Nvidia’s success is attributed to its GPUs, crucial for AI tasks like training and inference. The company’s revenue soared 114% to $130 billion in the past year, with further growth in the recent quarter. Customers like Meta Platforms and Alphabet continue to invest in AI, supporting Nvidia’s positive earnings trend.

Nvidia’s gross margin, above 70% in recent quarters, is a key factor for investors. Despite challenges like U.S. restrictions on chip exports, Nvidia aims for a mid-70% gross margin range by year-end. Strong profitability and demand for its products suggest continued momentum, possibly leading to stock growth in 2025.

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