NVIDIA Stock Fluctuates, Bitcoin in the Spotlight
The technology world is once again abuzz with the latest news surrounding NVIDIA, the chip giant behind the artificial intelligence (AI) revolution. However, 2025 appears to be a rollercoaster for the company.
From record stock prices to drastic declines due to AI competition, plus Bitcoin investment rumors, NVIDIA continues to be the center of attention. What's going on? Let's take a look!
NVIDIA: From the Peak of Glory to New Challenges
NVIDIA made history in July 2024, when its stock price reached a record high of USD 174.28, driven by soaring demand for AI chips. Its market capitalization even surpassed USD 4 trillion, surpassing Apple and Microsoft, making it the world's most valuable company.
First-quarter 2025 revenue reached USD 44.1 billion, surpassing analyst expectations, with data center revenue surging 73% to USD 39 billion, according to Investing.com.
However, this success was short-lived. In January 2025, NVIDIA shares plummeted 17% in one day, losing USD 600 billion (approximately IDR 9,714 trillion) in market capitalization.
The cause? The emergence of DeepSeek, a Chinese AI startup that released a low-cost open-source AI model, costing just USD 6 million and taking two months to develop. This model used the low-capacity NVIDIA H800 chip, sparking investor concerns that demand for NVIDIA's premium AI chips could decline.
NVIDIA CEO Jensen Huang remained optimistic. He stated that innovations like DeepSeek would actually increase computing needs, thus increasing demand for high-end AI chips like Blackwell.
However, its Q4 2024 financial report showed a tighter profit margin of just 71% due to the high production costs of Blackwell chips.
NVIDIA and Bitcoin Rumors: Strategy or Speculation?
Amid the stock market fluctuations, surprising news emerged: NVIDIA is reportedly considering holding Bitcoin on its balance sheet, following in the footsteps of Tesla and MicroStrategy. This rumor surfaced after NVIDIA shares fell 35% since January 2025, fueled by external pressures such as US tariffs and competition from Huawei.
According to Indodax, more than 630,000 BTC are now held on the balance sheets of large companies, and NVIDIA, with its long history in the crypto world through GPU mining, could be the next player.
Analysts like Alex Guts of Banxe say this move could strengthen NVIDIA's image as a technology pioneer with a progressive financial vision. However, some are skeptical, considering this mere speculation to distract from market pressures.
Meanwhile, the price of Bitcoin itself is rising sharply, reaching USD 112,000 in July 2025 following Donald Trump's controversial statement urging a Federal Reserve interest rate cut.
AI Trends and Competition in 2025
Besides DeepSeek, competition in the AI sector is intensifying. Startups like Elon Musk's xAI are raising up to USD 12 billion in funding, while Reka AI secured USD 110 million from investors including NVIDIA itself.
The AI industry is expected to continue to grow, with greater computing needs. However, NVIDIA must face challenges such as geopolitical tensions, particularly US tariffs that could impact sales in China, as well as innovation from competitors like AMD and Intel.
The GTC 2025 conference, dubbed the “Super Bowl of AI,” failed to meet investor expectations despite NVIDIA announcing its latest Vera Rubin chip and partnerships with Disney and Google DeepMind. NVIDIA shares fell 3% post-conference, reflecting overly high market expectations.
What Does This Mean for Investors?
For investors, NVIDIA remains attractive but risky. With a P/E ratio of 50x and a gross profit margin of 70.11%, NVIDIA demonstrates strong fundamentals.
However, its high valuation and potential growth slowdown make the stock vulnerable to corrections.
Analysts at Traders Union predict NVIDIA's stock price could reach USD 186.99 by the end of 2025, with a long-term projection of up to USD 1,000 by 2030 if its AI dominance continues.
Meanwhile, Bitcoin's fluctuations add a new dimension to investment strategies. For those interested in diversification, platforms like Reku and Nanovest offer easy access to investing in NVIDIA stock and crypto assets, with insurance protection for security.
The Future of NVIDIA and AI
NVIDIA remains the king of the AI sector, but 2025 demonstrates that no one is immune to competition and market dynamics.
With innovations like the Blackwell and Vera Rubin chips, and the potential for diversification into Bitcoin, NVIDIA has a strong opportunity to continue its leadership.
However, investors should be wary of geopolitical risks, shrinking profit margins, and competition from new players like DeepSeek.
