TendieTensor TendieTensor
You’re browsing as
Guest
Free Preview
Sign in/sign up to unlock all features.

News  ›  The Motley Fool

After Soaring In 2025, Is It Time to Take Profits on This High-Flying AI Stock? Or Is It Time to Double Down?

The Motley Fool Logo The Motley Fool By Daniel Sparks
After Soaring In 2025, Is It Time to Take Profits on This High-Flying AI Stock? Or Is It Time to Double Down?

Nvidia stock surged 39% in 2025 following a 171% gain in 2024, driven by explosive AI infrastructure demand with Q3 revenue reaching $57 billion (up 62% YoY). While CEO Jensen Huang attributes sustained growth to three major platform shifts (CPU-to-GPU transition, AI transformation, and agentic AI), analyst Daniel Sparks recommends trimming oversized positions rather than doubling down, citing concerns about potential competition from Amazon and Alphabet, possible demand consolidation, and valuation risks.

Insights
NVDA   neutral

Strong business fundamentals with 62% revenue growth and exceptional demand, but analyst recommends trimming positions due to valuation concerns, potential competition from well-capitalized tech giants, and risks of demand consolidation or bubble correction. Not recommended to double down despite bullish case.