By Keith Speights
Publication Date: 2025-12-08 08:13:00
Santa Claus may or may not have a rally in store for this high-flying AI stock.
Nvidia (NVDA +1.50%) appears to be about to do it again. The chipmaker has delivered big gains in all but two years since 2014. Its shares are up more than 35% year-to-date, with only three and a half weeks remaining in 2025.
Should you buy Nvidia stock hand over fist before the end of the year? Here’s what history suggests.
Today’s Change
(1.50%) $2.73
Current Price
$185.15
Happy holidays?
Stocks, in general, tend to perform well near the end of the year. December ranks as the third-best month for the S&P 500 (^GSPC 0.35%) since 1950. Only April and November have higher historical average returns.
There’s also a phenomenon called the Santa Claus rally. These stock market surges occur during the last five trading days of December and the first two trading days in January. Santa Claus rallies have occurred in roughly four out of every five years.
Why does the holiday season bring cheer to investors so often? One potential explanation is that tax-loss harvesting typically wraps up by mid-December. The theory is that once this selling pressure eases, stocks are more likely to rise.
Another suggestion is that institutional investors often take vacations in late December. This allows retail investors to have a greater impact on stock moves. Additionally, some…