Nvidia stock may rebound as analysts predict surge in AI chip shipments for 2025

Nvidia's stock has been flat for the past three months due to concerns about its growth in artificial intelligence (AI). However, analysts expect a significant increase in shipments of Nvidia's AI chips in 2025, driven by new technology. Market research firm TrendForce predicts a 55% rise in AI GPU shipments next year, largely due to the upcoming Blackwell processors. Additionally, improvements in Nvidia's supply chain, particularly with its partner TSMC, are expected to boost production capacity. Despite a high price-to-earnings ratio, Nvidia's growth potential may justify its valuation. The company's price/earnings-to-growth ratio suggests it is undervalued, making it a potential buying opportunity before anticipated sales increases in 2025.