① Well-known investor Ross Gerber believes that NVIDIA is entering a new growth phase, driven by Global AI infrastructure development, with its cutting-edge chips being crucial. ② Investors are Bullish on NVIDIA's prospects before 2025, expecting its net sales to grow by 65 billion dollars, and EPS to more than double.
On December 31, according to the Financial Associated Press (editor Huang Junzhi), the stock price of NVIDIA, the "AI total leader," has indeed faced some setbacks around the end of the year, but looking forward from the last day of 2024, experts and investors believe this darling of the AI market is about to usher in a new chapter, along with more impressive quarterly growth.
Famous investor and CEO of Gerber Kawasaki Wealth Management, Ross Gerber, commented recently, "NVIDIA is 'printing money,' just like what happened with Apple in the early stages of the iPhone. Currently, the opportunities in AI are almost limitless."
After gaining fame due to high-performance gaming chips, Gerber has been an investor in the company for the past 10 years. He believes the company is entering the "next stage" of growth.
He explained that this growth will be driven by the rapid construction of Global AI infrastructure, largely propelled by NVIDIA's cutting-edge chips.
"NVIDIA's stocks are not expensive, but they are not cheap either," Gerber said. "However, the actual profits they bring, along with their monopoly position in the chip industry, make NVIDIA's prospects very promising for the next five years."
"I definitely will not give it up now. Therefore, for investors, NVIDIA needs to become a part of your portfolio just like Apple and Microsoft," he added.
On the other hand, the Inflow of retail investors also reflects the market's excitement about NVIDIA's future prospects.
According to research firm Vanda Research, as of this year, retail investors have net purchased approximately 30 billion dollars worth of NVIDIA Stocks. This makes NVIDIA the most popular stock among retail investors in 2024, with this amount nearly double that of the second-ranked SPDR S&P 500 ETF Fund (net purchases of 15.3 billion dollars), while Tesla, which was the largest stock net bought by retail investors last year, ranks third with 14.7 billion dollars.
Marco Iachini, senior vice president at Vanda, stated: "From a certain perspective, NVIDIA is the only stock that can overshadow Tesla because its stock price increase is astonishing. Its stock price performance has already spoken for itself."
However, some traders have exited NVIDIA this month amid a "rockets and spaceships" style rise. Bank of America Semiconductor Analyst Vivek Arya noted that the stock is facing a moment of self-reflection. This is related to several factors, including executive issues in driving leading innovation (issues with the launch of the Blackwell chip series) and the risks associated with Trump returning to the White House.
"Since March, what we've seen are execution problems that prevent customers from grasping it," he added.
However, overall, investors remain very Bullish on NVIDIA's prospects in 2025. Data shows that sell-side Analysts expect NVIDIA's net sales to increase by 65 billion dollars year-on-year by 2025, with EPS projected to more than double.
Dan Ives, a well-known Analyst at Wedbush, stated: "They are the only winners, the foundation of AI started with NVIDIA, and that hasn't changed."