Strong Gains in Monday’s Trading

As of 12:30 p.m. ET, Nvidia (NASDAQ: NVDA) stock is up 4.7% in today’s trading session. This significant gain comes amidst a broader market rise, with the S&P 500 (SNP INDEX: ^GSPC) up 1.1% and the Nasdaq Composite (NASDAQ INDEX: ^IXIC) up 1.6%.

Demand for AI Hardware Continues to Soar

The strong demand for artificial intelligence (AI) hardware is a key driver behind Nvidia’s share price increase. This trend is reflected in Foxconn’s (Hon Hai Precision Industry) fourth-quarter report, which revealed record revenue fueled by robust demand for AI server hardware. As one of Foxconn’s largest customers and the leading provider of Graphics Processing Units (GPUs) used for AI servers, Nvidia’s business is directly tied to this growing market.

CEO Jensen Huang’s Keynote Speech at CES

Tonight, Nvidia CEO Jensen Huang will deliver a keynote speech at the Consumer Electronics Show (CES), where he is expected to unveil new products and technologies. While the focus of his presentation may be on consumer-facing offerings such as graphics cards for gaming, investors are also likely to hear about the company’s advanced AI initiatives, including the ultra-advanced GB300 AI processor and robotics projects.

Record Sales Results from Foxconn

Foxconn’s fourth-quarter report is a bullish indicator for Nvidia, as the tech manufacturer’s record revenue growth was largely driven by strong demand for AI server hardware. This trend suggests that investment in high-end AI infrastructure is still in its early stages of long-term growth, making Nvidia stock an attractive option for investors.

Long-Term Outlook Remains Promising

With a 208% increase in share price over the last year alone, Nvidia’s winning streak continues. While the near-term may see some volatility depending on how well the company’s new products and technologies are received at CES, the long-term outlook remains promising. Microsoft’s plans to spend $80 billion building out AI data centers in its 2025 fiscal year is a significant vote of confidence in Nvidia’s technology.

Investing in Nvidia: A Smart Move for 2025?

With Microsoft’s AI spending guidance being a bullish indicator for high-end AI hardware demand, Nvidia stock looks like a smart buy in 2025. As the largest customer of Nvidia, Microsoft’s plans to invest heavily in AI infrastructure will only further fuel growth for the company.

Before You Buy: Consider This

While Nvidia may be a strong investment opportunity, it’s essential to consider all options before making a decision. The Motley Fool Stock Advisor analyst team has identified what they believe are the 10 best stocks to buy now, and Nvidia wasn’t one of them. However, with its track record of growth and innovation in the AI space, investors may still find Nvidia an attractive option.

Invest $1,000 in Nvidia Right Now?

If you’re considering investing in Nvidia, here are a few things to keep in mind:

  • The Motley Fool Stock Advisor analyst team recommends building a diversified portfolio with regular updates from analysts.
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  • Since 2002, the Stock Advisorservice has more than quadrupled the return of the S&P 500.

Conclusion

Nvidia’s strong gains in Monday’s trading are a testament to its continued growth and innovation in the AI space. With Foxconn’s record sales results and Microsoft’s plans to invest heavily in AI infrastructure, the long-term outlook for Nvidia remains promising. As investors continue to look for smart buys in 2025, Nvidia stock is certainly worth considering.

Recommendations

  • Consider investing in a diversified portfolio with regular updates from analysts.
  • Take advantage of two new stock picks each month to diversify your investment portfolio.
  • Review the track record of growth and innovation in the AI space when evaluating potential investments.