How Nvidia became No 1 in the S&P 500, by the numbers

Momentum in technology innovation and lower interest rates are generally good for the stock market, but high valuations, global tensions and uncertainty around the U.S. presidential election could pose risks. Blended exposure offers gain potential plus volatility protection—the best of both worlds. Thus far, the war in Ukraine and rising conflict in the Middle East have not created major problems in the U.S. financial markets.

Is Nvidia Still the Best Artificial Intelligence (AI) Stock to Own for 2025?

One analyst thinks the stock could soar another 55% over the next 12 months. The S&P 500 pulled 0.5% higher after flipping between gains and losses several times during the day. Banks, smaller companies and other areas of the stock market that tend to do best when the economy is strong helped lead the way, while bitcoin briefly broke above $99,000.

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• One analyst thinks the stock could soar another 55% over the next 12 months.
• Nvidia rose just 0.5% after beating analysts’ estimates for profit and revenue yet again, but it was still the strongest force pulling the S&P 500 upward.
• BJ’S Wholesale Club rose 8.3% after likewise delivering a bigger profit than expected.
• Please bear with us as we address this and restore your personalized lists.

Nvidia’s stock market value topped $3.3 trillion. How it became No. 1 in the S&P 500, by the numbers

NVIDIA Corporation provides etoro forex broker review graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The company’s products are used in gaming, professional visualization, data center, and automotive markets. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California. NVIDIA Corporation provides graphics, and compute and networking solutions in the United States, Taiwan, China, and internationally. The company’s products are used in gaming, professional visualization, datacenter, and automotive markets.

This means that the company could purchase up to 1.6% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s board of directors believes its stock is undervalued. Additionally, the CES 2025 event is expected to be a platform for Nvidia to potentially reveal its next-generation GPUs. Rumors suggest that Nvidia might unveil updates about its RTX 50 series, including desktop GPUs based on the Blackwell architecture. This anticipated announcement could further bolster Nvidia’s market position and stock performance. This chart is a price-to-one-year-forward-earnings ratio, and it prices the stock based on the next fiscal year’s earnings (in this case, FY 2026, ending January 2026).

Research Reports: NVDA

Demand for its Superchips and related hardware is at a fever pitch. As CEO Jensen Huang puts it, «The age of AI is in full steam, propelling a global shift to Nvidia computing.» Granted, Wall Street’s enthusiasm about Nvidia has declined somewhat as its share price has increased. In September, 55 of the 60 analysts surveyed by LSEG rated Nvidia as a «buy» or «strong buy.» So far in October, LSEG has surveyed 38 analysts. Twenty-two recommended the stock as a «buy» or «strong buy.»

Uncertainty about the factors noted above, from the outcome of the U.S. election to foreign conflicts, almost ensure the market will have good days and bad ones. High valuations could exacerbate the ups and downs as investors oscillate between fear and greed. Michael Ashley Schulman, partner and chief investment officer for Running Point Capital Advisors, holds a midrange view. Schulman believes the S&P 500 will grow 7% to 11% next year, with volatility along the way. He notes economic growth, earnings expansion, review: financial modeling for equity research rising mergers and acquisitions activity and lower interest rates as influential factors. Ed Mahaffy, president and senior portfolio manager at ClientFirst Wealth, Legacy & Estate Planning, has a more bullish outlook.

NVIDIA Corporation (NVDA) Eyes AI Memory Chip Certification as Samsung Reshuffles Leadership Amid AI Chip Struggles

Nvidia beat estimates handily, delivering revenues of $35.1 billion and earnings per share (EPS) of $0.81. Consensus targets were $33.2 billion and $0.75, respectively. Nvidia’s (NVDA 0.66%) strong artificial intelligence (AI)-related growth has driven the shares up 179% so far in 2024, at the time of this writing. Nvidia Corporation’s earnings show strong growth, with Q3 revenue up 94% YoY and data center sales driving impressive performance, despite recent share price declines.

Lingering inflation and disappointing corporate earnings are the biggest risks the stock market will face in 2025. Sector adjustments can help you capitalize if the Fed continues lowering interest rates. Capital-intensive sectors like technology and industrials tend to get a lift when rates fall. Consumer discretionary stocks will also benefit if cheaper debt encourages spending growth. More consumers may, for example, splurge on luxury vacations or new cars if these can be financed affordably. If you have adjusted your income holdings to favor high-yield cash deposits and bonds in recent years, it may be time to unwind those changes.