TLDR:
- Fisher Asset Management holds $11.75B stake in NVIDIA, making it one of their top picks for 2025
- NVIDIA reported Q3 revenue of $35.1B, up 94% year-over-year, driven by AI demand
- CEO Jensen Huang will deliver CES 2025 keynote on Jan. 6, expected to announce next-gen GPUs
- Company dominates with 88% of graphics card market share
- Strong demand for H200 GPU and upcoming Blackwell architecture systems in 2025
The technology giant NVIDIA continues to demonstrate strong market performance, with its third-quarter fiscal 2025 results showing remarkable growth driven by artificial intelligence demand. The company reported revenue of $35.1 billion, representing a 94% increase compared to the previous year, with the data center segment contributing $30.8 billion, up 112% year-over-year.
Ken Fisher’s Asset Management firm has placed substantial confidence in NVIDIA, maintaining a $11.75 billion equity stake. This investment reflects the firm’s broader strategy of heavily weighting technology stocks, particularly those benefiting from the AI boom.
In the graphics card market, NVIDIA maintains a commanding 88% market share, showcasing its dominant position in both gaming and professional applications. This market leadership has translated into strong financial performance, with the company’s stock value increasing by 187% this year.
The company’s H200 GPU, succeeding the popular H100 model, has achieved the fastest product ramp-up in NVIDIA’s history. Major cloud service providers, including Amazon Web Services, Microsoft Azure, and CoreWeave, have widely adopted these processors, driving sales into the double-digit billions by the end of the third quarter.
Looking ahead to 2025, NVIDIA’s next-generation Blackwell architecture systems are positioned as a major growth catalyst. The company has already shipped 13,000 GPU samples to customers in the third quarter, with demand currently exceeding supply, allowing NVIDIA to maintain premium pricing.
The company’s networking business has shown solid growth, with revenue increasing 20% year-on-year in the third quarter. This growth is attributed to strong demand for InfiniBand and Ethernet switches, SmartNICs, and BlueField DPUs from cloud service providers and supercomputing centers.
NVIDIA’s enterprise AI software suite services have gained significant traction, with over 1,000 companies utilizing their NIM microservices. This adoption reflects the growing trend of enterprises implementing AI agents and copilots in their operations.
For the fourth quarter, NVIDIA projects revenue to reach $37.5 billion, representing a 70% increase. This forecast demonstrates continued strong demand for their AI-related products and services.
The company has been strategically investing its revenue in various AI-related ventures, including stakes in companies like SoundHound and Applied Digital, positioning itself for future growth in the AI sector.
NVIDIA’s current price-to-earnings ratio stands at 54.4, notably lower than its five-year average of 75.8. The company’s price/earnings-to-growth ratio of 0.23 suggests potential undervaluation despite the stock’s strong performance.
Wall Street analysts maintain an optimistic outlook, with a median target price of $175, suggesting a 26.6% upside potential. Among 67 analysts covering the stock, the majority express bullish sentiments about NVIDIA’s future prospects.
Investors are particularly anticipating CEO Jensen Huang’s keynote address at the 2025 Consumer Electronics Show on January 6, where NVIDIA is expected to unveil next-generation GPUs, including the RTX 5080 and RTX 5090.
The company’s Omniverse platform continues to gain traction, benefiting from advances in industrial AI and robotics applications. This platform provides developers with tools for creating real-world simulations, expanding NVIDIA’s presence in industrial applications.
In the inference platform space, NVIDIA has established itself as the global leader, leveraging its extensive installed base of AI-optimized GPUs and robust software ecosystem.
The global AI market, projected to reach $826.7 billion by 2030, continues to provide growth opportunities for NVIDIA, with the company maintaining its strong competitive position through technological innovation and market leadership.
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