NVIDIA's stellar performance. Most famous stocks, Part 1.

Have you been reading the stock market news lately and it seems like there's a name on every corner -... NVIDIA? This is no coincidence. This company has risen from the ashes in recent years to become one of the most valuable and talked about companies in the world. But what is behind this impressive rally? Is it just an AI-mill or is there more to the company that makes it a potentially long-term investment?

This is the first part of our new blog series where we dive into the stories of the world's most famous stocks. We don't just look at the charts and the numbers, but try to understand the true nature of the company, what has led to success and what lies behind past scandals or volatility.

What is NVIDIA and what do they do?

Many know NVIDIA as the graphics cards manufacturers that are popular with video gamers and professionals. This was the original vision of the company's founder, Jensen Huang, when he founded the company with two friends in 1993. Their revolutionary GPU or Graphics Processing Unit (GPU) changed the world of computer games forever.

But nowadays, games are only a small part of their business. In recent years, their focus has shifted to data centres, and the artificial intelligence (AI). GPUs, originally designed for the complex rendering of graphics, also proved ideal for machine learning and artificial intelligence applications, as they can process large amounts of data in parallel. NVIDIA has become the backbone of the AI revolution, supplying its chips to almost every major technology company involved in AI development.

Meteoric rise in shares: what's behind it?

NVIDIA's share price has not risen overnight. While their growth has been long term, there has been an explosion over the last couple of years. For example, in 2024, their profitability increased by 114% and in 2025 by 71,55%, with just data centre segment accounted for nearly €88% of this total. This is an incredible example of how one company can successfully reshape its business profile to meet market needs.

There are two main factors behind this explosion:

The generative AI boom. Since the emergence of ChatGPT and other language models, the demand for chips has exploded.
Leadership in the AI chip market. While NVIDIA has competitors such as AMD and the Intel, they currently have an overwhelming majority and a near monopoly in the market. This allows them to maintain high prices and make high profits.

As a result, NVIDIA's market value has grown into the trillions of dollars, putting them in the same category as other tech giants such as Apple and Microsoft. It's incredible how a company that started out as a niche product for video gamers has managed to become a symbol of global technology.

Scandals and volatility: not all is rosy

Behind every success story there is a downside and NVIDIA is no exception. Over the past few years, the company has had to deal with a number of challenges.

The consequences of the crypto boom. NVIDIA graphics cards were also popular with cryptocurrency miners, which caused some confusion in the market. in 2022 fine The US Securities and Exchange Commission (SEC) has fined the company $5.5 million for failing to disclose to investors the impact of crypto mining on the sale of its gaming segment.
Volatile share prices. Although the long-term trend has been upwards, NVIDIA Share have also undergone significant falls. For example, during 2022, the value of the share fell by nearly 50%. This shows that even the hottest stocks are not immune to economic downturns or changes in investor sentiment.

These examples teach us an important lesson: when investing in equities, it is always important to understand the... Risks. High growth can also mean high volatility.

Jensen Huang - from vision to icon

The NVIDIA story is inextricably linked to its charismatic founder and CEO. Jensen Huangiga. He is widely recognised as a visionary who was able to see the potential of graphics cards for more than just gaming. His everyday choice of clothing (black leather jacket and T-shirt) has made him an icon in the tech world, in the same way that Steve Jobs was known for his black-necked shirt.

Huang's leadership has been aggressive, innovative and forthright. He has steered the company to where the new and big opportunities are and has not been afraid to take risks. This is one of the reasons why NVIDIA has been able to stay one step ahead of its competitors.

2025 price hike: endless ups and downs

While NVIDIA's long-term growth trend has been impressive, it was 2025 that showed the real volatility of the stock. After several years of phenomenal rises driven by the AI boom, the first months of 2025 began to bring clouds of worry for investors. The stock, which had been used to moving in only one direction, underwent a series of sharp falls that panicked many retail investors. This was not driven by the company's poor financial results, but mainly by speculative and geopolitical factors.

Analysts and the financial media spoke of three main reasons that increased volatility:

AI bubble cartouche: At the beginning of the year, there was widespread debate in the markets as to whether the hype of artificial intelligence had created a bubble in values, particularly in the case of NVIDIA, whose price seemed to have gone through the roof. While the company's own financial results remained strong, speculative discussions created uncertainty among investors and caused the share price to fluctuate. This is a perfect example of how investors' speculation psychology can have an impact on markets even when fundamentals are strong.
Competition: While NVIDIA dominates the AI chip market, competitors started to emerge strongly in 2025. AMD announced new AI chips that are competitive, and Intel made big strides in its foundry business, which threatened NVIDIA's market share. This raised concerns among investors as the strengthening of competitors threatened NVIDIA's market dominance. On a positive note, however, the news in September 2025 that NVIDIA invests $5 billion in Intelto jointly develop a new generation of data centre processors. This strategic move helped the stock recover and showed NVIDIA's desire to strengthen its position while reducing its dependence on Asian manufacturers such as TSMC.
Geopolitical tensions and the China ban: However, the most important source of volatility in 2025 was the escalation of geopolitical tensions between the US and China. Unlike previous US export restrictions that affected NVIDIA's business in China, the new and significant blow came directly from China. In September 2025, China announced that it had banned its leading tech companies such as ByteDance and Alibaba from buying and testing NVIDIA AI chips (such as the RTX Pro 6000D) designed specifically for the Chinese market. While the company's own financial results remained strong, the news raised major concerns about NVIDIA's revenues from the Chinese market, which accounted for 13% of their total sales last year. This is a perfect example of how geopolitics and political decisions can directly affect the share price and future prospects of even the strongest companies.

The volatility of 2025 was a painful but instructive lesson for investors, reminding them that the stock market never goes straight up. The period highlighted that even the most successful companies are not immune to economic and geopolitical risks, and that big rallies can be followed by significant setbacks.

Summary

NVIDIA is a great example of how technological innovation and strategic leadership can transform a company. Their GPUs are the engine of the artificial intelligence era and their financials speak for themselves.

But the question remains: will their frantic growth continue? That depends largely on the evolution of AI and whether competitors can catch up. In any case, the story is an enlightening example of how conscious risk-taking and long-term vision can create huge value.