Should I Buy Nvidia Stock?

Nvidia has become one of the most talked-about companies in global markets, known for its dominance in graphics processing, AI hardware and data centre technology. But after years of explosive growth and heavy investor interest, many are now asking: should I buy Nvidia stock in 2025?

Let’s take a closer look at Nvidia’s current position, its long-term outlook, and how it compares to similar companies.

Why Consider Buying Nvidia Now?

There are several reasons Nvidia remains on investor watchlists. Its technology is central to artificial intelligence, cloud computing and gaming. Nvidia’s chips are used not only in personal computers and servers but also in AI models powering tools like ChatGPT and autonomous driving software.

Its financials are strong. In its latest full-year results, Nvidia posted over $130 billion in revenue, with net income rising sharply compared to the previous year. These numbers are backed by sustained demand from cloud providers, hardware manufacturers and major corporations.

What sets Nvidia apart is its control of both innovation and infrastructure. It designs not just the chips but the platforms that connect them, offering full-stack solutions across AI, graphics, robotics and more. This integrated approach has become a key competitive advantage.

Should You Buy on the Dip?

The idea of buying Nvidia “on the dip” has gained traction among investors watching for a short-term pullback. But timing the market is always difficult.

While the share price has fluctuated in early 2025, much of that is linked to temporary headwinds. Some investors have expressed concern over slowing chip demand in China, or competition from in-house AI chips at companies like Apple and Google. However, Nvidia’s wide lead in AI hardware, software ecosystems and customer relationships still gives it an edge.

If you're investing for the long term and believe in the continued growth of AI and data infrastructure, buying Nvidia at current levels could still be justified, even if it isn’t at its absolute lowest point.

What Is the Outlook for Nvidia?

Nvidia’s future looks closely tied to AI. The company is betting big on enterprise-level AI adoption, including its role in powering data centres and supercomputers. The launch of its Blackwell and Rubin chips signals another leap in processing power, helping to future-proof its offering.

However, Nvidia isn’t without challenges. Geopolitical tensions could affect global supply chains and restrict sales in key markets. And as more firms design their own chips, Nvidia may face growing pressure on pricing.

Still, analysts remain broadly positive. Revenue growth is forecast to continue, and demand for AI infrastructure remains strong. With new industries adopting machine learning at scale, Nvidia appears well-placed to benefit.

Is Nvidia Popular With Investors?

Nvidia remains one of the most held and traded stocks in both US and international markets. It is heavily weighted in major indexes and often features in growth and tech-focused portfolios.

Retail investors favour Nvidia for its association with future-facing industries, while institutional investors see it as a core holding in the AI and semiconductor sectors. However, there are mixed views on valuation, with some analysts suggesting it may be priced ahead of its fundamentals.

What Companies Are Similar to Nvidia?

Investors interested in companies similar to Nvidia might look at Advanced Micro Devices (AMD), which competes in both gaming and data centre chips. Intel is another major name, although its performance has lagged behind in recent years.

Outside the US, companies like Taiwan Semiconductor Manufacturing Company (TSMC) and ASML are key players in the semiconductor space. Newer competitors, such as Qualcomm and even Apple, are expanding their in-house chip development to reduce reliance on third-party suppliers like Nvidia.

Each of these firms offers different exposure to the chip and AI markets, but Nvidia remains the most concentrated pure-play on AI hardware performance.

Final Thoughts

So, should you buy Nvidia stock? If you're looking for exposure to the AI boom and are comfortable with the risks of investing in a high-growth tech firm, Nvidia remains one of the most compelling choices on the market.

Its dominance in both hardware and infrastructure, strong financial results and clear roadmap for growth make it attractive to long-term investors. However, those seeking stability or dividends may want to balance their portfolio with more conservative holdings.

Nvidia isn’t cheap, and the market has high expectations. But for many investors, it’s still a stock worth holding. Always consider your personal risk appetite and investment timeline, and speak to an adviser if you're unsure.