What's been the most important driver behind the continued bull market? A good case can be made that it's artificial intelligence (AI). Each member of the so-called "Magnificent Seven" stocks is heavily focused on AI.

Consumer Electronics Show (CES) 2025 revolved around AI. If not, it’s all that exhibitors could show. Talking about the highlight of the show, it was undoubtedly the keynote from Jensen Huang.

That sets the table for continued growth over the coming years. Analysts estimate that Nvidia will grow earnings by an average of 38% annually for the next three to five years. Today, Nvidia trades at a forward P/E ratio of 51, a rock-solid value for its anticipated growth.

Nvidia stock has been one of the biggest winners of the artificial intelligence (AI) revolution in the past couple of years, clocking remarkable gains of nearly 800% over the past two years on account of the red-hot demand for its data center graphics cards, but the past three months have been difficult for the chipmaker.

Artificial intelligence has been a hot market throughout 2024. AI fueled the surge in share price for companies such as Nvidia, which saw its stock rise nearly 180% over the past year through Dec. 31.