After a successful year in 2024, experts expect further growth in the new year 2025, especially at the AI profiteer NVIDIA. Investors should therefore keep an eye on another potential stock split.
• Significant growth recorded in 2024
• Experts with bullish outlook for 2025
• NVIDIA facing another stock split?
Strong tech sector
The year 2024 went extremely well, especially in the tech industry. The NASDAQ Composite, for example, has experienced rapid growth: in 2024 alone, the index, which reflects over 3,000 companies primarily from the technology sector, rose by more than 30 percent, after having already climbed by around 43 percent in 2023.
Experts expect the upswing to continue in 2025, especially taking historical trends into account, as The Motley Fool notes. As in 2024, the drivers for this are likely to continue to be the boom in artificial intelligence, an improved economic situation and also the Fed’s recent interest rate path.
Hype around NVIDIA shares is likely to continue
According to The Motley Fool, stock splits are likely to come back into focus in the new year. Experts point in particular to the NVIDIA share, which has increased massively in value, primarily due to the AI hype. The chip giant carried out a 10:1 stock split in 2024, after a 4:1 split in 2021.
Numerous Wall Street experts assume that the price strength will continue in 2025. For NVIDIA’s fiscal 2026 fiscal year, which begins in late January 2025, consensus expects revenue of $195 billion, which would represent an increase of more than 50 percent year over year. Meanwhile, the highest estimate is $269 billion, as The Motley Fool points out. That would imply growth of more than 100 percent. Since NVIDIA is known for surprising, the actual number is likely to be somewhere in between, according to The Motley Fool. The market leadership in the AI sector continues to provide support – NVIDIA’s GPUs in particular are considered indispensable for modern AI models. NVIDIA has a strong pipeline. Although competition in the industry is increasing, the chip giant should therefore continue to be well positioned in the new year.
Saxo Bank is also confident for NVIDIA in 2025. According to their forecast, the AI pioneer’s price is likely to continue to go through the roof and possibly even climb to $250. According to The Motley Fool, another split in NVIDIA shares in 2025 could be extremely attractive.
Editorial team finanzen.net
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