The stock price of "AI leader" Nvidia did suffer some setbacks at the end of the year, but looking forward to the future on the last day of 2024, experts and investors believe that this darling of the artificial intelligence (AI) market is about to usher in a new chapter and more impressive quarterly growth. Ross Gerber, a well-known investor and CEO of Gerber Kawasaki Wealth Investment Management, recently commented, "Nvidia is 'printing money', just like what happened to Apple in the early stages of the iPhone. Currently, the opportunities for artificial intelligence are almost unlimited."
Gerber has been an investor in Nvidia for the past 10 years after it made a name for itself with high-performance gaming chips. He believes the company is entering the "next phase" of growth.
He explained that this growth will be driven by the rapid construction of global AI infrastructure, which is driven in large part by Nvidia's cutting-edge chips.
"Nvidia's stock is not expensive, but it's not cheap either," Gerber said. "But the actual profits they bring in, and their monopoly in the chip industry, give Nvidia a very good prospect over the next five years."
"I'm certainly not giving up on it now. So for investors, Nvidia needs to be part of your portfolio just like Apple and Microsoft," he added.
On the other hand, the inflow of retail investors also reflects the market's excitement about Nvidia's future prospects.
According to data from research organization Vanda Research, retail investors’ net purchases of Nvidia shares have reached approximately US$30 billion so far this year. This makes Nvidia the most popular stock among retail investors in 2024. This amount is almost twice that of the second-ranked SPDR S&P 500 ETF fund (net buying of US$15.3 billion), while Tesla, which became the largest net buying stock by retail investors last year, ranked third with US$14.7 billion.
Marco Iachini, senior vice president of Vanda, said: "From a certain point of view, Nvidia is the only stock that can steal Tesla's thunder because its stock price has risen astonishingly. Its stock price performance speaks for itself."
However, some traders are exiting Nvidia's "rocket ship" rally this month. Vivek Arya, a semiconductor analyst at Bank of America, said that the stock is facing a moment of self-reflection. This has to do with several factors, including execution issues in efforts to drive leading innovation (the launch of the Blackwell chip line has not gone smoothly) and risks after Trump returns to the White House.
"What we've seen since (March) is issues with execution that have kept customers from getting a handle on it," he added.
However, overall, investors are still very optimistic about Nvidia's prospects in 2025. Data show that sell-side analysts expect Nvidia's net sales to increase by $65 billion year-on-year by 2025, and earnings per share to more than double.
Dan Ives, a well-known analyst at Wedbush, said: "They are the only winner. The foundation (of artificial intelligence) starts with Nvidia, and this has not changed."