Nvidia (NASDAQ: NVDA) consistently crushed the market over the past few years. Its outperformance becomes even more impressive when viewed over even longer time periods. However, 2025 will be a new year filled with both challenges and tailwinds.

Artificial intelligence (AI) has turned out to be one of the key reasons behind the healthy growth of the semiconductor industry. The proliferation of this technology has driven an increase in demand for multiple types of chips ranging from application-specific integrated circuits (ASICs) to processors to memory.

Nvidia has been in magnificent form on the stock market in the past year, recording stunning gains of almost 207% as of this writing. This is thanks to the consistently strong growth in the company's top and bottom lines on account of the booming demand for its artificial intelligence (AI) chips.

However, the company's latest results suggest that the growing demand for smartphones thanks to catalysts such as artificial intelligence (AI) could send this semiconductor stock soaring in 2025. Let's take a closer look at Qualcomm's fiscal fourth-quarter 2024 results released on Nov.

Nvidia ( NVDA -3.26%) first disclosed a stake in fellow semiconductor company Arm Holdings ( ARM -5.59%) in the fourth quarter of 2023. The position was valued at $147 million at the time, but a recently filed Form 13F shows the position is now worth more than $280 million and accounts for about 65% of Nvidia's $433 million stock portfolio.