Is It Too Late to Buy AI Leader Nvidia in 2025? A Crystal Clear Answer Emerges

As we approach the midpoint of 2025, investors may be wondering if it's too late to buy into artificial intelligence (AI) leader Nvidia (NVDA). The company's stock has been on a rollercoaster ride, with volatility unnerving some investors. However, a growing mountain of evidence suggests that the answer to this question is a resounding "no." Let's dive into the data and analyze Nvidia's position in the AI market to determine if it's still a worthwhile investment.

Nvidia's dominance in AI-centric processors has been a windfall for the company, with its stock soaring over 800% since the start of 2023. The company's graphics processing units (GPUs) have become the gold standard for various use cases, including video games, data centers, and AI. Generative AI, in particular, has driven unprecedented demand for Nvidia's products, fueling triple-digit revenue and profit growth for five successive quarters.



However, recent declines in Nvidia's stock price have raised concerns about the sustainability of this growth. In early July, the stock lost as much as 27% over four weeks, only to rebound vigorously and regain nearly all of those losses in the following month. This volatility has left investors wondering if they've missed the boat on Nvidia.

Faltering demand, or the calm before the storm?
The recent decline in Nvidia's stock price was driven by fears that demand for AI could dwindle, with a great deal of future growth already baked into the stock price. However, mounting evidence suggests that this concern may be premature. Super Micro Computer, a leading provider of server solutions, recently announced that it had delivered more than 2,000 direct liquid-cooling rack systems since June and was currently shipping more than 100,000 GPUs per quarter. This suggests that demand for Nvidia's GPUs remains robust.



Nvidia CEO Jensen Huang echoed this sentiment in a recent interview, stating that demand for the company's next-generation AI platform, Blackwell, is "insane." He also noted that the AI boom is still in its early stages, with the modernization of existing data centers and the upcoming "biggest wave of AI" yet to come.

Furthermore, Nvidia's partnership with global IT consultancy company Accenture to help enterprise companies rapidly scale their AI adoption has the potential to drive significant growth. Accenture launched the Accenture Nvidia Business Group, staffed by 30,000 business professionals, to help customers with process reinvention, AI-powered simulation, and sovereign AI. This partnership is expected to generate $3 billion in bookings in Accenture's recently completed fiscal year and shows no signs of slowing down.



Finally, data provided by Taiwan Semiconductor Manufacturing (TSMC) leaves no question about the ongoing demand for AI. TSMC's September Revenue Report revealed quarterly revenue of NT$759.7 billion ($24.6 billion), increasing 39% year over year and surpassing Wall Street's consensus estimate. Nvidia is one of TSMC's largest customers, accounting for roughly 11% of sales last year. This suggests that AI-related demand remains strong for Nvidia as well.

The evidence is clear: Nvidia investors have been on a thrilling ride since early 2023, with the company's fiscal 2025 second-quarter results illustrating its success. For the fiscal 2025 second quarter (ended July 28), Nvidia delivered record revenue that grew 122% year over year to $30 billion, fueled by record data center and gaming segment growth.



In conclusion, the evidence overwhelmingly suggests that it is not too late to buy AI leader Nvidia in 2025. The company's dominance in AI-centric processors, robust demand for its products, and strong partnerships with industry leaders indicate that Nvidia is well-positioned to continue its growth trajectory. As the AI revolution continues to unfold, investors who missed the initial surge in Nvidia's stock price still have an opportunity to capitalize on the company's long-term potential. However, as with any investment, it is essential to conduct thorough research and consider your risk tolerance before making a decision.