So, how can Nvidia's stock soar 67% in 2025? Simple. It does what it's expected to and gives a solid outlook for next year. Right now, Nvidia trades for 52 times trailing earnings, which is near the cheapest level it has traded at over the past two years.

Euphoria around the prospects of artificial intelligence (AI) helped snap the capital markets out of a wicked funk that took place during much of 2022. And while some investors may be wary of just how long the bull market will last, history suggests 2025 should be another terrific year for technology stocks in particular.

The semiconductor industry has received a major shot in the arm from the rapid advancement of artificial intelligence (AI) technology: The size of the semiconductor market jumped by an estimated 19% last year to $630 billion,

Companies will commonly split their stock after a strong run-up in price. While it doesn't change any of the underlying fundamentals of the company, it's a strong signal from management that it believes the stock will continue moving higher.