My Prediction For Nvidia Stock in 2025 Came True. Here’s What I Expect to Happen Next. | The Motley Fool

Artificial intelligence (AI) stocks climbed last year, but it wasn’t a particularly smooth road. From concerns about AI spending to worries about potential import tariffs, and finally, questions about a potential AI bubble, these stocks met their share of headwinds. Still, my prediction concerning market bellwether, Nvidia (NVDA +1.15%), in 2025 came true.

I predicted that the company would impress the market, sustaining gross margin levels of more than 70%, and that would help Nvidia stock deliver its third consecutive annual win in 2025. That happened, with Nvidia shares advancing 38%.

Now, here’s what I expect to happen next.

Nvidia’s 2025 headwinds

So, first, let’s talk a bit more about Nvidia’s path last year. The company encountered the headwinds I mentioned above, plus another: The U.S. reinforced export controls on chips to China, blocking Nvidia’s ability to ship chips there as of early in the year. In fact, this lowered gross margin to about 60% in the fiscal first quarter due to a billion-dollar charge linked to this inventory that Nvidia couldn’t export.

Today’s Change

(1.15%) $2.14

Current Price

$188.61

Key Data Points

Market Cap

$4.6T

Day’s Range

$185.71 – $190.00

52wk Range

$86.62 – $212.19

Volume

3.7M

Avg Vol

186M

Gross Margin

70.05%

Dividend Yield

0.02%

Still, the company’s gross margin surpassed 70% in the following quarters, and revenue continued to climb in the double digits….