Nvidia remains the dominant AI chipmaker in the market, but where is the stock headed for the rest of this year and into the next?

That's the key reason to seriously consider buying Nvidia shares before 2025 comes to a close.

The S&P 500’s cyclically adjusted price-to-earnings (CAPE) ratio just hit 40 for the first time since 2000. The metric — popularized by Nobel-winning economist Robert Shiller — takes the S&P 500 and divides it by the average of its inflation-adjusted earnings over the last 10 years.

Nvidia says it will invest $5 billion in Intel; Treasury yields rally

It's hard to imagine that any stock may have performed better than Nvidia ( NVDA -0.82%) over the past five years. The company has been a huge winner due to the artificial intelligence (AI) trend, as its chips provide the majority of the processing power used to develop, train, and operate AI models.

US stock market retreated today after hitting record highs recently, with the S&P 500 slipping 0.53% to around 6,658 and the Nasdaq falling nearly 1% amid a selloff in Nvidia shares. The Dow Jones Industrial Average also dipped 0.

NVIDIA presents superior revenue growth in key periods, enhanced profitability, and a comparatively lower valuation compared to Marvell Technology, indicating that investing in NVDA may be more advantageous. NVDA’s last 12 months revenue growth was 71.6%, whereas MRVL’s was 37.1%.

Brett Schafer has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Other stocks that’ve seen a lift this year after pledging to spend more than $317 billion combined on AI include Meta Platforms Inc., Microsoft Corp, Alphabet Inc. and Amazon.com Inc., whose gains account for a major part of the S&P 500 Index’s rally in 2025.