Nvidia Stock Rallied 39% in 2025. This Year, It Could Go Much Higher

• A question of uncertainty washed implicit Nvidia investors successful 2025.

• The chipmaker weathered the tempest and delivered market-beating returns.

• Several catalysts could propulsion the banal to caller heights successful 2026.

• 10 stocks we similar amended than Nvidia ›

If 2025 taught america anything, it was the information that uncertainty is the lone constant.

Take Nvidia (NASDAQ: NVDA) for example. The chipmaker notched blistering gains for 2 successive years earlier its maturation was stunted by uncertainty past year. A notable database of challenges faced the institution successful 2025, yet investors climbed a partition of interest that initially sent the banal plummeting 37%. To adjacent retired the year, however, the banal soared 38.9%, according to information provided by S&P Global Market Intelligence, much than treble the 16.4% gains of the S&P 500.

Let's look astatine what drove the banal higher successful 2025 and wherefore determination mightiness beryllium much to travel successful the twelvemonth ahead.

The barroom was acceptable precocious for Nvidia past year, arsenic it had delivered back-to-back years of triple-digit growth, fueled by request for artificial quality (AI). Although a deceleration of its maturation was expected, it inactive made immoderate investors nervous.

Moreover, immoderate feared that the instauration of DeepSeek's R1 reasoning exemplary would trim request for Nvidia's AI-centric graphics processing units (GPUs), though those concerns were unfounded. The wide implementation of tariffs connected imports raised the specter of higher prices, but investors yet took a "wait and see" attitude.

The prohibition connected the merchantability of AI chips to customers successful China was arguably the biggest hurdle. Nvidia designed its H20 AI chips to conscionable strict export restrictions and began selling them successful 2024. However, successful aboriginal 2025, the Trump Administration banned the merchantability of these chips to China, adding to the uncertainty.

The expected slump successful request related to tariffs and DeepSeek ne'er materialized, and Nvidia continued to turn its gross and profits astatine a steadfast clip. In its fiscal 2026 3rd 4th (ended Oct. 26), the institution reported grounds gross that climbed 62% twelvemonth implicit twelvemonth to $57 billion, driving net per stock (EPS) of $1.30 up 67%. However, Nvidia's outlook suggests that its gross maturation volition accelerate, calling for Q4 gross of $65 billion, which would correspond maturation of 84%.

There are reasons to judge that Nvidia tin scope those lofty goals, which mightiness adjacent crook retired to beryllium conservative.

CEO Jensen Huang gave the keynote code astatine CES past week, dropping the astonishment announcement that Nvidia's "revolutionary" Vera Rubin -- the company's next-generation AI chips -- were already astatine afloat production, six months up of schedule. More importantly, Huang said Rubin would trim AI inference costs by 90% compared to its existent Blackwell chip.