Shares of Nvidia (NASDAQ: NVDA) soared higher on Wednesday, rising as much as 4.7% to a new all-time high. At 3:02 PM ET, the stock was still up 4.62%.
The catalyst that sent the chipmaker and artificial intelligence (AI) specialist to the next level was the outcome of the US presidential election and what it means for the future of AI.
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The impact of AI on the stock market in recent years is undeniable, and Nvidia has been a prime example. The company’s graphics processing units (GPUs) have become the gold standard for providing the computing power needed to train and run generative AI models. This in turn has delivered five consecutive quarters of revenue and profit growth of 100% or more.
Wedbush analyst Dan Ives released a note in the wake of the election results, saying he expects “a strong AI focus from the gates of Trump for US Big Tech players.” He further stated that “AI initiatives in the US will increase… [which] would be a major tailwind for players in the space.
Analysts at UBS echoed these thoughts, noting that “AI adoption and monetization have continued to increase.” They further said that thanks to AI-related spending from major tech companies, “AI’s growth story remains robust.”
As the de facto poster child for AI progress, what’s good for AI is certainly good for Nvidia.
To be clear, investors shouldn’t expect the triple-digit growth that Nvidia has achieved in each of the past five quarters, but results will be robust nonetheless. For the third quarter of 2025 (ending September 29), management expects revenue of $32.5 billion, which would represent growth of 79%, with a commensurate increase in profit. Moreover, according to Nvidia, the upcoming release of the next-generation Blackwell AI-centric processor has already led to extraordinary demand, which bodes well for the future.
At 34 times forward earnings, Nvidia stock isn’t exactly cheap, but given the company’s position as the leading supplier of AI chips, I’d say it’s worth every penny.
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