EduInvesting | 15 May 2025
Once upon a time, Nvidia was just a gamer’s dream — powering graphic cards that made Call of Duty look a little more deadly. Fast forward to 2025, and Nvidia is the godfather of AI infrastructure, the chip king whose GPUs are now powering everything from ChatGPT to Elon’s next tweet.
But with the stock trading above $900 (~₹75,000/share), and with a potential 10:1 stock split coming up, the question is:
“Is Nvidia still a buy, or is this the AI bubble’s final form?”
🎮 First, How Did Nvidia Get Here?
Let’s rewind this cinematic origin story.
- Founded in 1993 — made graphics chips for video games
- Invented CUDA architecture — GPUs for parallel computing
- Pivoted from games to deep learning/AI
- Now dominates data centers, cloud AI, and even self-driving cars
It’s like your gaming cousin from 2010 suddenly became Jeff Bezos + Iron Man.
🧠 Why Nvidia Matters Today
Nvidia makes the chips that make AI possible:
| Segment | Nvidia’s Role |
|---|---|
| Generative AI (ChatGPT, Claude) | Needs Nvidia GPUs to train models |
| Cloud (AWS, Azure, Google Cloud) | All use Nvidia hardware extensively |
| Data Centers | Nvidia’s fastest growing business |
| Gaming | Still strong, but not the growth engine |
CEO Jensen Huang is now a cult hero in tech. Black leather jacket. Hardcore hype. Kind of like Steve Jobs, but with RGB lighting.
💸 Financials: Is It Just Hype?
Nvidia’s FY2025 numbers are ridiculous:
- Revenue: $78 billion (up 130% YoY)
- Net Profit: $32 billion+
- Free Cash Flow: $27 billion (yes, they print money)
- Gross Margins: 78% (every rupee of silicon makes 78 paise in profit)
Compare that to TCS, Infosys, or even Apple. Nvidia isn’t just hot — it’s thermonuclear
