Nvidia Was +24.1% In May; Continued Up 4.9% Last Week; Here's Why
Introduction
Nvidia’s stock skyrocketed in May 2025, jumping 24% in just one month, thanks to a combination of booming AI demand, strong earnings, and optimism around U.S.-China trade relations.
Here’s what drove the surge:
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AI Chip Demand: Nvidia’s data center business grew 73% year-over-year, accounting for 89% of its total revenue. Companies like Meta, Alphabet, and Chinese tech giants stocked up on Nvidia’s AI chips, anticipating future shortages.
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Earnings Blowout: Nvidia reported $43 billion in revenue for Q1, a 65% increase from the previous year. Investors were thrilled by its strong profitability, with gross margins exceeding 70%.
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Trade War Easing: The U.S. softened some export restrictions on Nvidia’s AI chips, allowing it to regain access to a $50 billion market in China. This fueled optimism about future growth.
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Market Leadership: Nvidia briefly became the world’s most valuable company, surpassing Microsoft with a market cap of $3.444 trillion on June 3.
In short, Nvidia’s dominance in AI hardware, its ability to consistently crush expectations, and improving trade conditions made investors rush to buy.
About Nvidia
Nvidia:
- provides graphics and compute and networking solutions for the gaming, professional visualization, data center, and automotive markets and
- sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants.
Analyst Ratings
The average analyst rating for Nvidia stock is "Strong Buy" which means that analysts believe this stock is likely to perform very well in the near future and significantly outperform the market.
Stock Price Forecast
According to 42 professional analysts, the average 12-month price target for Nvidia stock is $172.93 which represents a 22.02% increase in the stock price over the next year. Source
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This article has been composed with the exclusive application of the human intelligence (HI) of the author. No artificial intelligence (AI) technology has been deployed.
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