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

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

By Daniel Sparks, The Motley Fool
Publication Date: 2026-01-01 02:51:00

What you do with your Nvidia stock really depends on what you think about these three major platform shifts.

With 2025 finally coming to a close, graphics processing units (GPUs) maker Nvidia (NVDA 0.56%) stock put up yet another year of extraordinary growth as its AI (artificial intelligence) products flew off the shelves and the company’s revenue and profits soared. In total, shares rose about 39% in 2025. And that’s on top of a 171% gain in 2024.

The big question for Nvidia investors now is whether it’s time to take some profits on the stock.

This article will take a look at Nvidia’s business and the valuation of its stock to determine what investors should do with their shares of this high-flying AI stock.

Image source: Getty Images.

Finishing 2025 strong

The boom in AI infrastructure spending has led to explosive growth at Nvidia, with recent results demonstrating an acceleration.

In fiscal Q3 (the period ended Oct. 26, 2025), the chipmaker saw its quarterly revenue hit $57.0 billion, up 62% year over year. That marks an acceleration from 56% growth in fiscal Q2, showing how powerful the tech company‘s growth story is.

And profits have continued soaring this year. Nvidia reported $26.4 billion of net income in fiscal Q2, up 59% year over year. Then it grew net income 65% year over year in fiscal Q3 to $31.9 billion.

Zooming out to look at the trailing nine months ended Oct. 26, Nvidia grew revenue 62% year over year to $147.8 billion and grew net income 52% year over…