The market has changed significantly since our last publication (March 10, 2025), so we’ve decided to update this article. Once again, we take a closer look at one of the most talked-about stocks on the market—Nvidia (ticker: NVDA). We’ll analyze the reasons behind the recent price drop, review the company’s Q4 financial results and the market’s reaction, examine its competitive battle with DeepSeek, and assess Nvidia’s growth potential and possible risks. Finally, we’ll present Wall Street Nvidia Stock Prediction for 2025, discuss Nvidia’s 2025 dividend outlook, answering the key question: is Nvidia a good investment in March 2025?
Why Is NVIDIA Stock Dropping? Analyzing Key Metrics – March 2025
We assume you already know the reason. President Donald Trump has confirmed the implementation of a 25% tariff on imports from Canada and Mexico. This has heightened concerns about a potential trade war and a slowdown in economic growth, leading to a decline in major stock indices.
Since the beginning of 2025, NVDA shares have fallen by more than 22%. As of this article update (March 10, 2025), the stock was trading in the range of $106–107. Back in January, analysts predicted a market capitalization of $4 trillion for the company. However, as of March 10, 2025, Nvidia’s market cap is approaching $2.5 trillion, currently standing at $2.6 trillion.
It’s worth noting that Nvidia’s high P/E ratio of 36.39 indicates strong growth expectations. However, the current decline could signal not just a temporary correction but also a potential overvaluation of the stock.
Nvidia Q4 2024 Earnings Report: Key Highlights and Analysis
On February 26, 2025 after the market closed, Nvidia released its financial results for Q4 and the full year 2024. The company delivered truly impressive numbers, driven—unsurprisingly—by the massive demand for AI. NVDA reported a record-breaking quarterly revenue of $39.3 billion, marking a 12% increase compared to the previous quarter and a staggering 78% growth year-over-year.
The key growth driver was the Data Center division, which generated $35.6 billion in revenue—a 93% YoY increase. Thanks to these strong results, Nvidia’s total annual revenue reached $130.5 billion, up 114% from the previous year.
A major factor behind this growth was Nvidia’s strategic focus on the Blackwell architecture, designed specifically for AI workloads. Blackwell sales alone reached $11 billion in the quarter.
CEO Jensen Huang described the demand for Blackwell as “astonishing.” He emphasized that the shift toward large language models and AI’s “deep reasoning” capabilities could require up to 100 times more computing power per task.
Looking ahead to 2025, Nvidia’s outlook remains strong. For Q1, the company expects revenue of approximately $43 billion (±2%), signaling continued expansion in high-performance computing.
How the Stock Market Reacted to Nvidia’s Q4 2024 Earnings
It’s always interesting to watch the market’s reaction after earnings reports. It’s often unpredictable, but in this case, the outcome seemed expected. Yes, the stock dropped.
Despite Nvidia’s strong Q4 financial results, the market reacted negatively. At the start of the trading day, shares were priced at $133. However, by the end of the first trading session after the report (February 27, 2025), NVDA had fallen 8%, closing at $120.
Let’s break down why this happened. Personally, I sold my shares a few days before the report at $135 for two main reasons: Trump’s policies and AI market saturation.
On the first point—no comment. Instead, I highly recommend following our X account to stay on top of stock market news. We post daily updates!
As for the second point, it’s pretty straightforward. Nvidia’s market cap is already hovering around $2.5–3 trillion. The kind of explosive growth we’ve seen in recent years—+50% in one year, +400% in two years, and over +1500% in five years—is simply not sustainable moving forward.
Nvidia vs. DeepSeek: Who Won the AI Battle in 2025?
In case you missed it, January 2025 brought an unexpected surprise – DeepSeek. The startup managed to train an AI model using cheaper Nvidia chips, keeping the total cost at just $6 million.
Following this news, the U.S. stock market lost a combined $1 trillion, and NVDA shares plunged 16% in a single day. However, once the panic subsided, the stock partially recovered. The initial fears turned out to be overblown – after all, advanced AI tasks still require Nvidia’s top-tier chips.
Key Challenges and Risks for Nvidia in 2025
Nvidia’s growth comes with challenges, including regulatory risks and market dependence. Here are the key factors to watch in this Nvidia Stock Prediction for 2025.
The first major risk for Nvidia in 2025 is the trade war escalation initiated by Donald Trump, along with the tightening of export regulations on high-performance chips from the U.S. Losing access to the Chinese market would be a significant blow for the company. While Nvidia is already adapting its product lineup to meet the new requirements, the profitability of these “scaled-down” chips remains uncertain.
The second risk is dependency on hyperscalers. Competition is intensifying, especially from Huawei and other Chinese manufacturers. Microsoft, Amazon, Google, and other cloud giants contribute a significant portion of Nvidia’s revenue. Any reduction in their AI infrastructure spending or a shift toward in-house chips—such as Google’s TPU—could slow NVDA’s growth.
The third risk is overall market instability. The market is currently highly volatile, reacting sharply to macroeconomic data, inflation, interest rates, and trade wars. Any negative news can significantly impact Nvidia’s stock price.
Nvidia’s Growth Potential in 2025 and Beyond
Is everything really that bad for Nvidia? The short answer: of course not! Here are a few reassuring reasons why:
1. AI Market Leadership. No matter what trade wars Donald Trump initiates, Nvidia remains the dominant force in AI. The company continues to provide the most advanced GPUs, which are in high demand across multiple industries.
2. Strong Financial Performance and Bullish Analyst Forecasts. The stock market may be chaotic, but there’s no need to panic. Nvidia’s earnings reports remain solid, and both company guidance and Wall Street analysts’ projections are optimistic. In fact, the company expects Q1 2025 revenue to reach $43 billion, signaling continued growth.
NVIDIA Stock Price Prediction 2025
According to MarketBeat, over the past 12 months, 42 Wall Street analysts have issued forecasts for Nvidia (NVDA) stock. The consensus rating is “Moderate Buy”: 37 analysts recommend buying, 3 suggest holding, and 2 have given a “Strong Buy” rating.
The average 12-month price target for Nvidia is $171.69, with the highest estimate at $220 and the lowest at $102.50. If we disregard the most pessimistic forecast, this Nvidia Stock Prediction suggests that NVDA stock is expected to rise by approx. 50% from its current price range of $106–107.
How Much Are Nvidia’s Dividends in 2025?
There’s not much to boast about here, but Nvidia remains consistent with its quarterly dividend payments. The amount remains symbolic—$0.01 per share—yet the company continues to issue payouts regularly. The next dividend is scheduled for April 2025.
In 2024, dividends were paid in January, April, July, and October. For 2025, two dates have already been announced: January 5 ($0.01 per share) and April 12 ($0.01 per share). While the yield is minimal, the fact that Nvidia maintains regular dividend payments highlights its financial stability and commitment to supporting shareholders.
Nvidia Stock Prediction: Is NVDA a Good Stock to Buy?
Personally, I gave in and bought some shares: 5 shares at $117, 5 shares at $112, and 5 shares at $109. The market is volatile, and it’s entirely possible that the $106–107 range isn’t the bottom yet. I plan to keep watching the price—if it drops below $100, I’m ready to grab another 5 shares.
For now, I’m giving NVDA a personal rating of “BUY“—but only if the stock stays in the $100–110 range. However, if you believe in Nvidia’s long-term success, this could be the perfect opportunity to build your position.
If you’re just starting your investing journey, check out our updated and improved investment guide – What Are Stocks and How Do They Work? Beginner’s Guide 2025
This article is for informational purposes only and does not constitute financial advice. The content reflects the author’s opinion and should not be interpreted as an investment recommendation.
