Nvidia Jumps as Market Rises on Positive Sentiment

Nvidia (NVDA) is still a dominating stock as it climbed 4.24% on Wednesday shortly after the market opened. The stock shot up after a week of steady increases.

Nvidia is doing very well after Trump's swearing in.
Nvidia is climbing again and outperforming the stock marekt average.

The performance of Nvidia stock on Wednesday is cementing it as a worthwhile investment for 2025, showing that it can still perform well after Donald Trump’s swearing in and actually outperform its entire week of gains. If Tuesday was a hesitant day for the stock market, then Wednesday is when all thrusters began firing, and Nvidia is leading the way.

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This AI-chip stock dominated in 2023 and 2024, helping the company achieve the second highest market cap in the world, only after Apple. Since 2023, the company has generated $3 trillion in value and continues to climb, demonstrating that there is still incredible growth potential from the AI market.

Could Nvidia Be Headed for a Trough?

The AI niche has done very well in the last couple years, with 2025 potentially becoming the biggest year yet for growth in that market. However, analysts wonder how much longer Nvidia can continue to reap major earnings from this market. The momentum may have to die down once the market is saturated and AI innovations begin to stagnate.

There is still a race among many different tech companies to see who can develop the fastest and most advanced AI programs, and they need Nvidia’s chips to do that. But what happens when AI hits its potential for now and there are no significant advances to be made?

If that happens, Nvidia will go through what is known as a trough, or a market downturn where sales lag significantly. This is common for many tech markets, but AI has not hit that yet. This is why investors should be aware that a trough could be coming and that 2025 could see that trough for a while until AI overcomes another hurdle.

There could also come a point where AI advancements hit the human level of intelligence. That could come in 2027, says a former ChatGPT researcher. Elon Musk believes that this moment will arrive sometime in 2029. Is it possible for AI to go beyond that level of intelligence? If not, then the market could be headed for saturation and slowdown in the next few years.

 

 

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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