Nvidia's market cap has soared, but analyst predicts 10% decline in 2025

From Nasdaq: 2025-01-09 05:06:00

In 2024, the Dow Jones, S&P 500, and Nasdaq all reached record highs with gains of 13%, 23%, and 29% respectively, driven in part by the rise of artificial intelligence (AI) technology. AI allows software and systems to improve and learn new skills independently, showcasing limitless potential.

Semiconductor giant Nvidia has seen its market cap soar by $3.3 trillion since 2023, with over 60 analysts rating the stock as a “strong buy” or “buy.” However, D.A. Davidson analyst Gil Luria stands as the biggest skeptic, predicting a 10% decline in 2025, citing concerns about AI use cases and competition.

Nvidia faces challenges in 2025, including increased competition from companies developing their own AI chips and political uncertainties, such as potential tariffs on Chinese imports and regulatory issues. Analysts warn of a potential AI bubble burst if real-world applications fail to generate positive returns on investment.

A “Double Down” stock recommendation highlights the potential for Nvidia and other companies to see significant growth in the future, with past examples like Apple and Netflix yielding substantial returns. Investors are urged to consider these opportunities before they miss out on the next big tech trend.



Read more at Nasdaq: Nvidia’s Biggest Skeptic Sees Its Shares Losing 10% in 2025 — Is Wall Street Overlooking Tangible Concerns With This Artificial Intelligence (AI) Leader?