This past yr was one other terrific one for technology stocks specifically. Tailwinds driven by artificial intelligence (AI) helped push the S&P 500 higher by 23%, while the Nasdaq Composite gained a formidable 29%.

The “Magnificent Seven” stocks were among the many yr’s top gainers available in the market, and maybe no other garnered more attention than semiconductor leader Nvidia — which was the top-performing stock within the Dow Jones Industrial Average in 2024.

Last yr, Nvidia gained roughly $2.1 trillion in market capitalization — the very best of any company. This propelled Nvidia to change into one in all the world’s most precious businesses. While Nvidia’s current run could suggest that the stock is due for a pullback, Wedbush Securities technology analyst Dan Ives is looking for significantly more growth ahead for the AI darling — and I agree.

Let us take a look at Nvidia’s latest catalysts and make the case for why 2025 might be one other one for the record books.

During the last two years, Nvidia has emerged because the leader of the pack within the AI marathon, and all of it boils all the way down to one thing: graphics processing units (GPUs). GPUs are advanced chipsets essential for developing generative AI applications.

Nvidia’s deep roster of GPUs has helped the corporate separate from competitors reminiscent of Advanced Micro Devices, and acquire an estimated 90% of the GPU market.

So as to add some context here, Nvidia’s dominance has fueled consistent revenue and profit growth for the corporate — allowing it to double down on research and development (R&D) and pioneer even newer, modern products. Enter Blackwell, Nvidia’s next-generation GPU architecture, which is reportedly already sold out for the following 12 months.

While that is more of a company-specific tailwind, Ives believes that broader investments in AI infrastructure could eclipse $1 trillion in the approaching years. Nvidia is profiting from this windfall of rising capital expenditure (capex), underscored by investments in European GPU cluster specialist Nebius, and the acquisition of AI infrastructure business Run:ai (which it acquired for a reported $700 million).

Given the large rise in Nvidia’s stock price, it is a prudent idea to have a look at among the company’s valuation metrics and cross-reference them against the catalysts I’ve covered above.

Data source: YCharts.

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