NVIDIA shares rise 3.01% on surging AI hardware and software demand

NVIDIA’s shares rose 3.0051% in pre-market trading on Dec. 24, 2025, building on a 36.6% annual gain driven by surging demand for its AI hardware and software solutions. The stock’s performance reflects sustained momentum in the artificial intelligence sector, particularly for the company’s CUDA platform and Blackwell chips, which remain critical to global data center expansion.

Analysts highlight NVIDIA’s strategic advantage in AI infrastructure, including plans to ship H200 chips to China ahead of the Lunar New Year. However, ongoing U.S.-China trade tensions and intensifying competition from rivals like AMD and Intel pose potential headwinds. Truist Financial recently raised its price target for NVIDIA to $275 from $255, citing stronger-than-expected demand and upward revenue revisions in the AI hardware market.

While the company’s dominance in AI remains intact, investors are closely monitoring risks such as geopolitical friction and evolving customer preferences. NVIDIA’s ability to maintain its leadership amid rising competition and regulatory challenges will likely influence its trajectory in the coming months.

Industry watchers remain optimistic about the long-term prospects of AI-driven computing, with NVIDIA positioned to benefit from continued innovation in machine learning and generative AI. The company’s roadmap includes next-generation silicon and software tools tailored for enterprise-scale AI deployment, further reinforcing its market position.