Should You Invest $1,000 in Nvidia Right Now?
Key Points
Nvidia stock is beating the market this year, but its gains are slowing down.
The company is facing competition from other chip developers.
Nvidia continues to roll out more powerful products to power AI.
- 10 stocks we like better than Advanced Micro Devices ›
Nvidia (NASDAQ: NVDA) stock is up 37% year-to-date as we approach the end of 2025. That's about double the S&P 500's total return this year, which is certainly an impressive gain. However, it's a significant slowdown from previous years -- 239% in 2023 and 172% in 2024. In fact, it has gained 1,260% over the past five years, including a painful period when it lost more than half of its total value in 2022.
Will that trend continue? And does it make sense to invest $1,000 in Nvidia stock today?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Nvidia.
The key to AI
Nvidia has had such an incredible run-up over the past few years because its graphics processing unit (GPU) chips are the most powerful chips to handle massive data loads for artificial intelligence (AI) creation. As hyperscalers build out huge AI businesses and develop data centers to generate the next wave of AI capabilities, Nvidia's chips have been in high demand.
The company continues to roll out new and more powerful products to drive all the new and exciting AI development, but competition is heating up, with companies like Advanced Micro Devices and even Alphabet scoring new, important deals for their chips.
Given Nvidia's central position in AI right now, it doesn't look like there's any near-term danger of losing its edge. It's natural that as the industry explodes, other companies are going to make strides and also take some market share.
Which means that, as much as we can anticipate future challenges, Nvidia is still going to be a good investment. Even if it doesn't deliver the same staggering gains it has in the past, investing $1,000 in Nvidia stock makes sense today.
Should you invest $1,000 in Advanced Micro Devices right now?
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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, and Nvidia. The Motley Fool has a disclosure policy.
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