Key Points
Nvidia (NASDAQ: NVDA) reported a 38% increase in its stock price in 2025, maintaining gross margins above 70% and overcoming challenges such as U.S. export controls on chips to China. The company faced a significant setback in early 2025, resulting in a billion-dollar charge that reduced gross margins to approximately 60% in its fiscal first quarter. However, demand for Nvidia’s GPUs led to a revenue increase of 62% in the most recent quarter.
Looking ahead to 2026, while external factors like increased export controls may impact stock performance, Nvidia is expected to continue generating strong earnings growth. Improved conditions, such as renewed permission to export to China, could further enhance stock prospects, although increased volatility is anticipated in the current high valuation environment.
