Prediction: Nvidia Will Beat the Market. Here’s Why

From Nasdaq: 2025-06-02 16:00:00

Nvidia (NASDAQ: NVDA) stock skyrocketed 25,250% in the past decade, with revenue growing at a CAGR of 39% and net income at 61%. Gaming GPUs initially drove growth, followed by data center GPUs for AI tasks.

Nvidia’s dominance in the AI chip market positions it for continued growth. With 82% of the discrete GPU market and 98% of data center GPUs, its ecosystem and sticky CUDA platform give it a competitive edge.

Despite challenges in China, Nvidia’s revenue grew at a CAGR of 120% from 2023 to 2025. Diversification into smaller segments like gaming, automotive, and professional visualization bodes well for sustained growth.

Analysts expect Nvidia’s revenue and earnings per share to grow at CAGRs of 31% and 29%, respectively. With a stock valuation at 34 times this year’s earnings, Nvidia remains reasonably priced for continued outperformance.

Consideration for investing in Nvidia should be made, as the Motley Fool Stock Advisor team has identified 10 stocks for investors to buy, with Nvidia not included. The top 10 list could offer substantial returns in the coming years, based on historical performance.



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