Nvidia shares rose 3.01% pre-market on December 24 2025 signaling renewed investor confidence amid evolving market dynamics.

Nvidia shares rose 3.0051% in pre-market trading on December 24, 2025, signaling renewed investor confidence amid evolving market dynamics.

Recent developments highlight a shift in Nvidia’s strategic focus. The company’s data center segment, which accounts for nearly 90% of its third-quarter revenue, remains heavily tied to generative AI demand. Analysts caution that overexposure to this sector could pose risks if growth slows, though the firm is exploring diversification through autonomous driving, robotics, and quantum computing initiatives.

Revenue in its automotive and robotics division grew 32% year-over-year to $592 million in Q3, offering a glimmer of long-term potential.

A key near-term catalyst emerged as Nvidia advanced toward resuming chip exports to China, a move that could significantly boost quarterly revenue. Meanwhile, valuation concerns persist, with a forward P/E ratio of 23 seen as undemanding relative to its historical growth trajectory. Bernstein analyst Stacy Rasgon argues the stock is trading at a 13% discount to the semiconductor sector index, historically a rare occurrence that could drive future gains.

Investor sentiment is further bolstered by expanding partnerships, including expanded collaborations with hyperscale clients and advancements in Blackwell and Rubin chip deployments. However, rising cash burn among AI startups and growing competition from cloud giants like Amazon and Google underscore the need for Nvidia to adapt its business model to sustain its market leadership.