At CES 2025 in Las Vegas, chipmaker Nvidia Corp. (NASDAQ-NVDA) revealed its GeForce RTX 50 Series desktop and notebook GPU chipsets, the most advanced consumer GPUs for gamers, creators and developers.
Ahead of Huang’s speech, Nvidia shares rose 3.4%, breaking their record set in November. Shares of Nvidia and other AI companies have been rising steadily, even as criticism grows that their stock prices have already shot too high. Despite fears of a potential bubble, the industry is still talking up its potential.
Huang said GPUs that use the company’s next-generation Blackwell AI chip could bring breakthroughs in AI-driven rendering.
“Blackwell, the engine of artificial intelligence, has arrived for PC gamers, developers and creatives,” Huang said, adding that Blackwell “is the most significant innovation in computer graphics since we introduced programmable shading 25 years ago.” Blackwell’s technology is now in full production, he said.
NVIDIA stock development and long-term outlook
NVIDIA stock has been one of the best performers in the technology market over the past two years. In 2024, the company’s share price climbed to all-time highs, driven primarily by strong growth in artificial intelligence and data centers, where NVIDIA dominates. Demand for its products, such as GPUs for machine learning and cloud services, is proving to be steadily increasing.
However, despite this positive trajectory, NVIDIA stock is showing some volatility. This volatility is primarily driven by macroeconomic factors such as changes in interest rates, AI and technology regulations, and ARM acquisition opportunities. However, strong growth in generative AI is expected to continue, which will continue to support shareholder value growth.
Strategic Acquisitions and New Opportunities
One of the key steps for NVIDIA’s future growth is its planned acquisition of ARM Holdings, a UK-based microprocessor leader. If completed, this acquisition will open up new opportunities for NVIDIA in mobile, IoT and other high-growth segments. This acquisition could significantly strengthen its market position and open up new opportunities in mobile chips and IoT.
Other areas where NVIDIA sees growth potential are autonomous vehicles, where its technologies are supporting the growth of the autonomous driving systems market, and digital twins that can revolutionize industrial and manufacturing processes.
Nvidia Corp (NASDAQ-NVDA) also pays regular quarterly dividends to its shareholders. The dividend yield is currently 0.03% per annum and the actual dividend amount has been approved by the company’s general meeting of shareholders at $0.04 per share. These facts have attracted the attention of multinational investment corporations and private investors to buy shares of Nvidia Corp. (NASDAQ-NVDA) , for which the average target price for the short- to medium-term investment horizon has been set at USD 175.55 per share.
