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Few stocks have captured the market’s attention over the past year quite like Nvidia (NVDA). As a dominant force in artificial intelligence (AI) hardware, Nvidia has been at the center of the AI boom. However, it’s not just institutional and retail investors who are piling into the stock - U.S. Rep. Marjorie Taylor Greene is making her own sizable bets on NVDA, fueling discussions about whether investors should follow her lead.
Greene’s bets on Nvidia signal her confidence in the company’s future prospects. Her latest investment in the chipmaker, worth up to $15,000 at the end of January, underscores a strategic positioning that many investors might find intriguing.
With that, Greene’s investment in Nvidia raises important questions: Is now the right time to buy NVDA, or is the stock too expensive at current levels? What are the risks and potential catalysts that could impact its performance in 2025? Let’s figure it out.
About Nvidia Stock
Valued at a massive market cap of $3.41 trillion, Nvidia (NVDA) is a premier technology firm known for its expertise in graphics processing units and artificial intelligence solutions. The company is renowned for its pioneering contributions to gaming, data centers, and AI-driven applications. Its business is structured into two primary segments: Graphics and Compute & Networking.
Shares of the chipmaker have experienced a turbulent start to 2025, plunging nearly 17% on Jan. 27 amid the DeepSeek R1 panic before rebounding to post a modest 3.7% year-to-date gain.
Marjorie Taylor Greene Is Piling Into Nvidia Stock
Marjorie Taylor Greene has been the representative for Georgia’s 14th congressional district in the House of Representatives since she assumed office in 2021. Under the STOCK Act, the Republican Congresswoman is obligated to file disclosures for any stock transactions she conducts while in office. This law is designed to prevent insider trading by ensuring that members of Congress do not use privileged information to gain personal profit in the stock market.
Greene recently disclosed a series of new trades as President Donald Trump’s relationships with Big Tech leaders and other companies develop during his second term. Notably, leading tech executives, including Tesla’s (TSLA) Elon Musk, Amazon’s (AMZN) Jeff Bezos, Meta’s (MET) Mark Zuckerberg, Apple’s (AAPL) Tim Cook, and Google’s (GOOGL) Sundar Pichai, have reportedly been visiting Trump’s Mar-a-Lago residence to shape future tech policies. Given that Greene has actively invested in AI stocks, her investment moves are closely watched.
In a disclosure dated Jan. 27, 14 stocks and U.S. Treasurys were added to Greene’s portfolio. The Congresswoman holds two lots of Nvidia shares, with her most recent purchase - valued at up to $15,000 - made at the end of January. Considering Greene’s interest in investing in the AI revolution, it’s not surprising that she has chosen to invest in the AI darling.
NVDA Targets $10 Trillion Healthcare Market
Nvidia continues to strengthen its ecosystem, with the latest addition being Firefly Neuroscience to the Nvidia Connect program. Firefly plans to leverage the advanced tools and resources offered by this prestigious program to support a new strategic initiative aimed at creating a proprietary foundational model of the human brain using its FDA-cleared Brain Network Analytics technology platform. In addition to growing its ecosystem, Nvidia has shown a strong commitment to broadening its opportunities in the global healthcare market, which is valued at an astounding $10 trillion.
Meanwhile, the vast potential of AI in the healthcare market further enhances NVDA’s growth prospects. According to MarketsandMarkets, this sector is projected to exhibit a robust 49.1% compound annual growth rate (CAGR) globally by 2030. It’s also worth mentioning that NVDA has established partnerships with other prominent entities in this field, including IQVIA (IQV), Illumina (ILMN), Mayo Clinic, and Arc Institute.
NVDA Continues to Ride AI Tailwinds
Nvidia’s third-quarter results for its fiscal 2025 were strong. The chipmaker reported record quarterly revenue of $35.1 billion, topping Wall Street’s expectations by $1.95 billion. Robust sales of Hopper during the quarter contributed to a 17% sequential and 112% year-over-year increase in Data Center segment revenue, which stood at $30.8 billion. Notably, Hopper refers to a family of GPU architectures from Nvidia, with the H200 being the most advanced model within this family. NVDA posted adjusted EPS of $0.81, beating the consensus estimate by $0.06. With that, both the top and bottom line figures reflect an annual growth rate of nearly 100%.
Management projects total revenue of $37.5 billion for the fourth quarter of FY25. If the company meets this guidance, Q4 revenue will grow 69.7% year-over-year, while FY25 revenue will surge 111% year-over-year to $128.7 billion.
Risks Related to NVDA Stock
The recent launch of DeepSeek-V3 GenAI models shook the market following claims by the Chinese AI startup that it could train AI models at significantly lower costs. This raised concerns within the investment community that advancements in AI models could eventually reduce the necessity for increasing raw computing power in chips over the long term. As a result, customers might shift to chips that are sufficiently powerful yet more energy-efficient, potentially diminishing Nvidia’s advantage from developing increasingly more powerful AI chips. However, investors need not worry about Nvidia’s dominance in the short and medium term, as the AI chip market is currently constrained by supply.
It is also important to note that Nvidia’s customers, including Amazon, Microsoft, and Google, are developing their own AI chips, which directly compete with the company’s offerings. This is noteworthy, as these tech giants contribute to over 40% of the chipmaker’s revenue base.
Another headwind for the company is ongoing U.S.-China tensions. On Jan. 29, NVDA stock fell more than 4% following a Bloomberg report that the Trump Administration is considering additional restrictions on the company’s exports to China. The updated restrictions would now include Nvidia’s H20 GPUs, which are used for developing and operating AI software and services. However, the report indicated that any new potential restrictions are likely “a long way off.” Also, in December of last year, Nvidia came under investigation for alleged violations of China's anti-monopoly law, as well as for its acquisition of Mellanox Technologies. The move was reportedly taken in response to U.S. tech curbs. Additionally, escalating tariffs between the U.S. and China could impact Nvidia, as China accounts for 20%-25% of its data center revenue, the company’s largest income source. You can find more details about the U.S.-China chip war in one of my previous articles on NVDA.
All Eyes on NVDA’s FQ4 Results
Nvidia is set to release its FQ4 earnings report on Feb. 26, 2025, after market close. Despite some recent uncertainties, the fundamental drivers behind Nvidia’s growth remain strong. The main catalyst fueling Nvidia’s outlook remains the unprecedented demand for AI computing infrastructure, where it holds a dominant position. Analysts tracking the company forecast a 63.71% year-over-year increase in its adjusted EPS to $0.84 for FQ4. Also, Wall Street expects the company’s revenue to climb 72.31% year-over-year to $38.09 billion. Investors will also pay close attention to management’s revenue guidance for FQ1 and comments on market dynamics.
With that, the company’s upcoming earnings report is likely to be a key catalyst that will determine the stock’s near-term direction. If the company’s quarterly results, and crucially, its guidance exceed Wall Street estimates, NVDA stock is likely to surge and test its recent highs around the $150 price level. We will soon determine the expected magnitude of the post-earnings stock move. At the same time, even a minor miss in revenue or EPS could trigger a selloff, given that sentiment toward Nvidia has somewhat worsened since the rollout of DeepSeek R1.
Meanwhile, NVDA stock trades at a forward P/E ratio (Non-GAAP) of 47.22x, which is roughly in line with its five-year average yet sitting 83.21% above the sector median of 25.77x. Consequently, the stock’s rich valuation offers minimal margin for errors in execution. Any signs of slowing growth or margin compression could result in significant price volatility.
Options Market Sentiment on NVDA Stock
Looking at the option chain for Feb. 28, 2025 (just after the FQ4 results), the $139.00 CALL option has a bid/ask spread of $6.50/$6.60, while the $139.00 PUT option shows a spread of $6.10/$6.15. Note that this strike price is the closest to the current stock price. Now, we can determine the expected price movement using the midpoint prices of these options:
6.13 (139.00 put) + 6.55 (139.00 call) = 12.68/139.23 = 9.1%
Based on current prices and the long straddle strategy, the options market indicates that NVDA stock could move approximately 9% from the $139 strike price by the Feb. 28 expiration. That would place the stock in a trading range of about $126.6 to $151.9.
Notably, at the $139 strike price, open call options exceed open put options by approximately 1.7 to 1, with 5,464 calls open compared to 3,318 puts. This suggests that options traders hold a cautiously optimistic stance on the stock ahead of its earnings report.
What Do Analysts Expect for NVDA Stock?
Wall Street analysts are optimistic about Nvidia’s long-term growth potential, as evidenced by their consensus “Strong Buy” rating. Out of the 43 analysts covering the stock, 37 rate it as a “Strong Buy,” two advise a “Moderate Buy,” and four recommend a “Hold.” The average analyst price target for NVDA stock is $177.55, indicating potential upside of 27.5% from current levels.
The Bottom Line on NVDA Stock
Overall, Nvidia is a brilliant company with strong long-term growth potential. AI tailwinds appear unstoppable, further reinforcing the company’s fundamental strength. With the earnings report approaching, I believe investors should hold off on making any moves with the stock. As I often mention in my articles about NVDA, I encourage investors to capitalize on any dips in this high-quality stock.
