Could Nvidia Be Your Best Investment in the Second Half of 2025?
Key Takeaways
There are several catalysts that could send the chipmaker higher in the coming months.
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Quick insights and key information
3 min read
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investment
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July 18, 2025
03:02 AM
The Motley Fool
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From what the evidence shows, The data indicates that re are several catalysts that could send the chipmaker higher in the coming months
Additionally, Nevertheless, Over the past few years, Nvidia (NVDA 1. 06%) has emerged as the face of the artificial intelligence (AI) revolution
At the same time, However, during the first half of 2025, the company hit turbulence
Worries ramping competition, the potential impact of tariffs, and trade restrictions with China weighed on Nvidia's growth
Moreover, While those concerns are certainly justified, Nvidia's continues to gain steam
Additionally, Let's look at three catalysts that could give Nvidia stock a boost in the back half of the year, in today's market environment
Image source: Getty Images, in today's market environment
Sovereign AI gathers momentum CEO Jensen Huang has ized the notion that each country should chart its own course in AI
He's encouraging leaders to create their own infrastructure, assemble and maintain data, and train their workforce to fit from this game-changing nology
Governments of the world appear to be heeding Huang's call
Nevertheless, The European Union (EU) has announced plans to build five AI gigafactories across the continent, and 20 individual countries, including Germany, France, Saudi Arabia, South Korea, and the United Arab Emirates (among others), have jumped on the sovereign AI bandwagon
As the leading vider of AI-centric chips, Nvidia's strategy of moting sovereign AI is brilliant
Blackwell It's been more than a year since Nvidia announced its Blackwell chips, but these cessors only began shipping earlier this year
As such, sales of these next-generation AI chips have only just begun to impact Nvidia's financial results, with the bulk of the revenue expected to hit over the coming year
Additionally, Leading data center and cloud computing operators have pledged to spend $315 billion in capital expenditures this year, with the vast majority allocated to AI
As the leading vider of data center GPUs, Nvidia stands to benefit from this spending, in today's market environment
Sales to China Nvidia announced this week that it has applied for licenses to sell its H200 chips in China and has assurances from the Trump administration that they will be granted
Additionally, Estimates suggest that these sales could be nearly $10 billion per quarter, which would be a significant boost for Nvidia (something worth watching)
That's why Nvidia could be your best investment in the second half of 2025
Danny Vena has positions in Nvidia
The data indicates that Motley Fool has positions in and recommends Nvidia (an important development)
On the other hand, Conversely, The Motley Fool has a disclosure policy.
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