As of Monday’s trading, Nvidia (NASDAQ: NVDA) stock is seeing significant gains, with its share price up 4.7% at 12:30 p.m. ET. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) are also experiencing growth, with increases of 1.1% and 1.6%, respectively.
Strong Demand for AI Hardware Continues
The company’s stock price is climbing today following a fourth-quarter report from Foxconn (otherwise known as Hon Hai Precision Industry), which suggests that demand in the artificial intelligence (AI) hardware space remains strong. As one of Nvidia’s largest and most visible customers, Foxconn’s record revenue is seen as a bullish indicator for the AI leader.
According to Foxconn’s fourth-quarter results, published before the market opened this morning, the company’s cloud-and-networking products segment experienced impressive growth, powered by strong demand for AI server hardware. As the leading provider of Graphics Processing Units (GPUs) used for AI servers, Nvidia is likely to benefit from this trend.
Investors Look Forward to CES Keynote Presentation
Later tonight, at 9:20 p.m. EST, Nvidia CEO Jensen Huang will deliver a keynote presentation at the Consumer Electronics Show (CES). Nvidia has historically used CES as an opportunity to unveil new products and highlight its innovations in AI and computing. While the focus of the presentation is expected to be on consumer-facing products, including new graphics cards for gaming, it would not be surprising if Huang also discussed the company’s upcoming GB300 AI processor or robotics initiatives.
Nvidia Stock Continues Its Winning Streak
With today’s gains, Nvidia stock has officially reached a new high. Over the last year alone, the company’s share price is up 208%. While some volatility may be expected in the near term depending on how well what’s shown at CES tonight lives up to expectations, the long-term outlook for Nvidia remains promising.
Microsoft’s AI Spending Guidance: A Bullish Indicator
Last Friday, Microsoft published a blog post outlining its plans to spend approximately $80 billion building out AI data centers in its 2025 fiscal year. For comparison, the software giant is projected to spend $53 billion on capital expenditures in 2024. As Nvidia’s largest customer, this guidance suggests that demand for high-end AI hardware remains strong.
Is Nvidia Stock a Buy?
With signs that investment in AI infrastructure is still in its early stages of a long-term trajectory, Nvidia stock continues to look like a smart buy in 2025. The company’s position as the leading provider of GPUs used for AI servers makes it well-positioned to benefit from growing demand.
Should You Invest $1,000 in Nvidia Right Now?
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Disclosure
The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft.
