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.
🧨 Is This a Bubble?
Maybe. But here’s the catch:
Even if AI is overhyped, Nvidia still sells the shovels in the gold rush.
That’s like being the only chaiwala outside a crowded stock market — you’ll sell no matter what.
📈 The Stock Split Drama
- Stock price: $950 (₹79,000+)
- Announced a 10:1 split → new price will be ~$95 (₹7,900)
- Retail investors are rushing in like it’s an IPO
But let’s be clear:
A stock split doesn’t change fundamentals. It just makes it psychologically cheaper.
(And India loves things on discount.)
🤖 Future Growth Areas
- Blackwell GPUs launching — 2x faster for AI training
- Omniverse (Apple Vision Pro’s arch-nemesis)
- Robot AI chips, healthcare AI, military AI (Skynet, anyone?)
Also: Nvidia is developing custom silicon for AI companies — think tailor-made chips for OpenAI or Meta. That’s next-level business.
📉 Risks?
Of course.
| Risk | Reality Check |
|---|---|
| High valuation | PE ratio over 40 — not cheap |
| Competition (AMD, Intel) | Still years behind in AI chips |
| Overdependence on AI boom | If AI slows, revenue could too |
| China tensions | Govt export controls hurt revenue |
But so far, every risk has been a GPU-scented buying opportunity.
🧠 Should You Buy Nvidia Now?
If you’re Indian retail:
- Wait for the stock split to go live
- Track Nasdaq (where Nvidia is listed) or buy via INR-based platforms like Zerodha/INDMoney (if enabled)
- Or consider investing via AI-themed ETFs
If you already hold Nvidia:
Congratulations. You just became richer by holding silicone magic.
If you missed it:
This may still be early innings — not in gaming, but in global AI infrastructure.
📢 EduInvesting Verdict:
Nvidia isn’t a stock anymore. It’s tech infrastructure as an investment.
It’s the railway builder during the Industrial Revolution.
It’s the electricity company in the 1900s.
It’s the GPU overlord of 2025 — and probably 2026.
Would we buy it?
Yes — on dips. Or with chips.
