Nvidia Stock Soars: Is It Time to Buy, Sell, or Hold NVDA?

Nvidia (NVDA) stock has regained momentum, surging 51% in three months and briefly surpassing a $4 trillion market cap. The company's dominance in the AI ecosystem and strong financial performance, including a 69% YoY revenue increase to $44 billion, reflect its robust fundamentals. The Data Center segment led the charge, and the new Blackwell platform is now the key growth catalyst. Networking has also emerged as a second growth engine, generating $5 billion in quarterly revenue.

Nvidia (NVDA) stock has regained momentum, surging 51% in the past three months and briefly surpassing a $4 trillion market cap. The company's dominance in the AI ecosystem and strong financial performance reflect robust fundamentals. The Data Center segment led the charge, with the new Blackwell platform emerging as the key growth catalyst. Networking has also emerged as a second growth engine, generating $5 billion in quarterly revenue.

Nvidia's stock price has been on a roller coaster this year, but it has rebounded strongly since the introduction of OpenAI's ChatGPT in late 2022. The company's chips, modified graphics cards, and CUDA software platform are designed to both train and run AI programs, giving it a strategic advantage over rivals such as AMD (AMD) and Intel (INTC).

Nvidia's revenue has climbed steadily higher every quarter for the last two years, with the Data Center unit driving most of the growth. In the first quarter of 2025, the company reported $44.1 billion in revenue, up 69% year-over-year (YoY). Of that amount, $39.1 billion came from the Data Center business, which saw revenue grow 73% YoY [2].

The company's stock price has been on a dizzying rally since the AI boom, rising more than eightfold since ChatGPT made its debut. Nvidia's market cap briefly surpassed $4 trillion on Wednesday, making it the first publicly traded company to reach this milestone [1].

Nvidia's strong performance is not without challenges. The company took a $600 million hit to its market cap in January after DeepSeek revealed its R-1 model, which the company claimed it was able to train using less than top-of-the-line chips. However, both the training and inferencing aspects of AI have proven to be beneficial for Nvidia's processors, as they allow for more complex AI models [1].

Moreover, Nvidia has managed to shake off the Biden and Trump administrations' bans on the sales of its chips to China, which has taken a significant toll on its bottom line. Despite this, the company's stock price continues to climb [1].

In conclusion, Nvidia's stock has regained momentum, reflecting its strong performance in the AI ecosystem and robust financial fundamentals. The company's dominance in the Data Center segment and the emergence of the Blackwell platform as a key growth catalyst bode well for its future prospects.

References:
[1] https://sg.finance.yahoo.com/news/nvidia-stock-eyes-more-gains-after-chipmaker-becomes-first-company-to-reach-4-trillion-market-value-141526893.html
[2] https://www.businessinsider.com/nvidia-stock-price-nvda-history-4-trillion-market-cap-chatgpt-2025-7