The S&P 500 Is Expected to Jump Over 9% in 2025: 1 Magnificent Stock to Buy Before That Happens

Group 1: Market Outlook - The S&P 500 index has gained nearly 27% this year and is expected to continue rising, potentially reaching 6,600 by the end of 2025, which represents an increase of over 9% from current levels [1][2] - More optimistic forecasts suggest the S&P 500 could hit 7,000 by the end of next year, with BMO Capital Markets targeting 6,700 [2] Group 2: Nvidia's Performance - Nvidia's stock has outperformed the S&P 500 with gains of 180% this year, despite recent pressure following its fiscal 2025 third-quarter results [4] - The company reported $91.1 billion in revenue for the first nine months of the fiscal year, a 135% increase year-over-year, and expects to end fiscal 2025 with nearly $129 billion in revenue [5] Group 3: Demand and Supply Dynamics - Nvidia is experiencing "staggering" demand for its Blackwell AI GPUs, which are critical for AI training and inference, leading to a sellout of its chip capacity for the next 12 months [7][8] - The company has secured 60% of the advanced chip packaging capacity from TSMC, which plans to double its capacity next year to meet rising demand [9][10] Group 4: Earnings Projections - Nvidia's earnings per share (EPS) estimates are on the rise, with projections increasing from $3.83 to $4.41 for fiscal 2026 [11][12] - If Nvidia achieves $4.50 per share in earnings and trades at 40 times earnings, its stock price could rise to $180, representing a 30% increase from current levels [13]