In just a couple of years, Nvidia went from a notable tech stock to the most valuable company in the world -- disrupting the balance of the S&P 500, the Nasdaq Composite, and now the Dow Jones Industrial Average. This is great news for investors who are bullish on Nvidia, but not for folks who believe Nvidia is overvalued.

The past two years have been absolutely phenomenal for Nvidia (NASDAQ: NVDA) investors, as shares of the graphics card specialist shot up 736% during this period once it became evident that the company is going to play a central role in the proliferation of artificial intelligence (AI).

With Nvidia’s generally upbeat quarterly third-quarter earnings report now in the books, investors are gauging the company’s fourth-quarter outlook. In its third-quarter review last week, Nvidia also provided fourth-quarter guidance of $37.

Ed Yardeni, president of Yardeni Research, appeared on CNBC on November 27 to share insights on the market’s anticipated performance in 2025. He emphasized the significance of staying invested despite existing risks and high valuations, noting that the economy has shown resilience and interest rates have stabilized.

Nvidia (NASDAQ: NVDA) has undoubtedly been one of (if not the) best artificial intelligence (AI) stocks to own in 2023 and 2024. Why is Nvidia the AI leader in the first place? As AI models become more complex,

Nvidia stock hasn't taken off, even after delivering better-than-expected results and solid guidance. Investors seem to be concerned about the pressure on the company's margins due to the production ramp of its Blackwell processors.