With the chipmaker getting a significant boost to start the new year, Wall Street is once again looking at Nvidia (NVDA) outperforming the rest of Magnificent Seven stocks in 2025. There is no denying that competition will be aplenty, as the grouping is looking to take things even higher than they did last year.
In 2024, the S&P 500 increased over 20% for the second straight year. Interestingly, the market had not done that since the 1990s, as the seven technology stocks were certainly the biggest reasons why. Up 63% collectively last year, there is an expectation that they could put up similar gains this year. Moreover, they could be led by a similar company.
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Nvidia Looks to Finish 2025 Atop Magnificent Seven Yet Again: Who Could Challenge Them?
Since the arrival of OpenAI ChatGPT, AI interest has dominated the technology sector. Moreover, that has extended to the stock market. It has been evident that companies are racing to invest in developing tech as they seek to get ahead in investment interest. Throughout the last year, the Magnificent Seven have proven to be leaders in the space.
However, one company has emerged as the clear favorite, and they are looking to repeat this year. Indeed, Nvidia could very well outperform Magnificent Seven stocks yet again in 2025. However, it certainly won’t have an easy road considering the strides its competitors have already made.
Also Read: Nvidia (NVDA) Continues 197% Rally as Wall Street Eyes Competitor
Since the collective was named in 2023, Nvidia has been leading the pack. It did nothing to deter that expectation; it surged 171% over the last twelve months. Both sales and earnings soared alongside its investments. The chipmaker put more than $1 billion into AI startups, outinvesting the likes of Amazon (AMZN) and Microsoft (MSFT).
Its performance is projected to continue to impress. FactSet research did not track a single analyst that recommends selling NVDA, despite a difficult time to end the year. Moreover, it kicked off the new year going back to its winning ways. The stock has already jumped more than 3.7% midday.
Morgan Stanley, Bank of America, and Bernstein all chose Nvidia as a top pick. Moreover, it is currently looking to once again dethrone Apple (APPL) as the largest company by market cap. Perhaps more importantly, it is looking to be the first company to reach a $4 trillion market cap. Considering its recent history, that appears immensely doable en route to once-gain leading the magnificent seven competition.