Toyota's Woven Enters Into Alliance With SpaceX's Interstellar; to Invest 7 Billion Yen in Series F funding

Popular investor Ross Gerber isn’t holding back when it comes to Nvidia . He compares its current rise to “Apple during the early iPhone days” and says the company is basically “printing money.” His bold statement comes as Nvidia wraps up an incredible 2024, with its stock soaring about 190% and its market value topping $3 trillion.

That kind of growth doesn’t happen by accident. In Nvidia’s case, it was fueled by its unmatched dominance in artificial intelligence (AI) computing. CEO Jensen Huang summed it up best, saying, “the age of AI is in full steam, propelling a global shift to NVIDIA computing.”

And 2025 is already off to a strong start. Nvidia made waves at the Consumer Electronics Show (CES), where Huang introduced cutting-edge innovations across AI, gaming, robotics, and autonomous systems. One of the most exciting announcements was around its upcoming Blackwell GPUs, which are being called the most advanced chips Nvidia has ever created. With huge orders already lined up for the year ahead, it’s clear Nvidia isn’t slowing down anytime soon.

With Gerber predicting even more growth over the next five years, it leaves us with one big question: Is Nvidia still a buy at these prices? Let’s take a closer look at what makes this tech giant tick.

Inside Nvidia's Financial Powerhouse

Nvidia , based in Santa Clara, California, controls more than 80% of the global GPU market. The company has come a long way from being just a gaming chip maker to becoming a leader in AI technology, and the numbers clearly show this transformation.

Trading at $140.14 as of Jan. 7, 2024, Nvidia’s stock has skyrocketed 185.43% over the past year and is already up 4.36% in 2025.

This growth has pushed its market value to an incredible $3.66 trillion, making it one of the most valuable companies in the world.

The financial results are just as impressive. In the third quarter of 2024, Nvidia reported $35.1 billion in revenue, a 17% jump from the previous quarter and a massive 94% increase compared to the same time last year. A big part of this success comes from its data center business, which brought in $30.8 billion in revenue. This marks a 112% increase from the year before, driven by booming demand for AI infrastructure and Nvidia’s strong leadership in the market.

On top of that, Nvidia’s earnings have soared. GAAP earnings per share hit $0.78, up 111% year-over-year, while non-GAAP earnings reached $0.81, a 103% increase. Although its dividend is small at just $0.04 annually with a yield of 0.03%, the real focus is on its growth potential. With a forward P/E ratio of 50.60x — much higher than the sector median of 25.74x — it’s clear investors are willing to pay more for Nvidia’s strong future prospects

Huang is also optimistic about Nvidia’s next big thing: the Blackwell GPU, which was named Yahoo Finance’s “Product of the Year” for 2024. Huang plans to get Blackwell “into every data center in the world” and expects it to outperform its predecessor, Hopper, by early 2025. He calls this era the “age of AI,” as more businesses adopt AI solutions and countries invest heavily in AI infrastructure to stay competitive.

Why Nvidia Keeps Winning

Nvidia is continuing to make big moves in AI and autonomous vehicles, building on partnerships that support Ross Gerber’s optimistic outlook. Starting 2025 with a bang, the company announced at CES that Toyota , the world’s largest automaker, will use Nvidia’s DRIVE AGX Orin platform and DriveOS operating system for its next-generation vehicles. This partnership is a huge step forward for Nvidia, showing how its technology is shaping the future of car manufacturing.

Additionally, the company unveiled its revolutionary Cosmos platform, featuring state-of-the-art generative world foundation models designed specifically for autonomous vehicles and robots. This technology breakthrough has already attracted major players, with Aurora Innovation and Continental AG partnering to develop driverless trucks using Nvidia’s next-gen DRIVE Thor system, targeting mass production by 2027.

The momentum extends across multiple sectors. While strengthening its automotive presence, Nvidia has also partnered with Logitech and Inworld AI to develop an AI-powered streaming assistant, showcasing its versatility in gaming and content creation.

Nvidia isn’t stopping at cars and trucks — it’s expanding its reach into industrial AI. The company has developed technology that lets supply chain companies create digital twins of their warehouses and factories, allowing them to test robotics virtually. Combined with the growing integration of Nvidia Omniverse into physical AI applications, this shows how Nvidia is expanding its influence into industrial automation.

These moves are already paying off. Nvidia’s automotive business is expected to grow to around $5 billion by fiscal year 2026. With automakers, truckmakers, robotaxi companies, and startups all using Nvidia’s DRIVE AGX platform, Huang’s statement that “the autonomous vehicle revolution has arrived” feels less like an exaggeration and more like a reality coming to life.

Wall Street's Verdict on NVDA Stock

Wall Street’s excitement about Nvidia perfectly aligns with Ross Gerber’s optimistic view, as the company’s financial outlook continues to impress. For the fourth quarter of fiscal 2025, Nvidia expects revenue to hit $37.5 billion, give or take 2%, with gross margins projected at 73.0% to 73.5%. These numbers show that Nvidia is not just growing, but also keeping its profit margins strong while expanding its operations.

Analysts are clearly on board, giving the stock a “Strong Buy” rating with an average price target of $175.55 — about 25% higher than its current price. Out of 43 analysts, 36 rate it a "Strong Buy," three call it a "Moderate Buy," and only four recommend holding the stock.

This level of confidence highlights Wall Street’s belief in Nvidia’s ability to stay ahead in the AI chip market and keep its leadership intact. This strong support from analysts fits well with Gerber’s five-year bullish prediction.

Conclusion

So, is Nvidia a buy now? Given the company's dominant market position, record-breaking financial performance, expanding partnerships across industries, and overwhelming Wall Street support, Ross Gerber's bullish outlook seems well-founded. While the stock's premium valuation might give some investors pause, Nvidia's leadership in AI chips and consistent execution make it hard to bet against. With a 25% upside potential and game-changing innovations in the pipeline, Nvidia remains a compelling buy for the next five years.

On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Toyota Motor , Ford Motor and Stellantis are among carmakers that plan to combine their carbon emissions with Tesla's to meet the European Union's 2025 regulatory requirements for CO2 emissions, multiple news outlets reported Tuesday, citing a European Union filing.

The pooling enables automakers to collectively meet the EU's CO2 standards by averaging emissions across multiple brands, which could help them avoid potential fines, according to Reuters.

Toyota Motor, Ford Motor, Stellantis and Tesla did not immediately respond to requests for comment from MT Newswires.

The broad market exchange-traded fund SPDR S&P 500 ETF Trust was up 0.1% and the actively traded Invesco QQQ Trust advanced marginally by 0.01% in Tuesday's premarket activity as traders mull Nvidia's plans for new artificial intelligence products.

US stock futures were higher, with S&P 500 Index futures up 0.2%, Dow Jones Industrial Average futures gaining 0.2%, and Nasdaq futures advancing by 0.1% before the start of regular trading.

November's international trade in goods and services bulletin will be released at 8:30 am ET, followed by the ISM Services Index final for December at 10 am ET.

In premarket activity, bitcoin was down by 1.4% and the cryptocurrency fund ProShares Bitcoin Strategy ETF was 1.3% lower.

Power Play:

Health Care

The Health Care Select Sector SPDR Fund retreated marginally by 0.01%. The Vanguard Health Care Index Fund , the iShares US Healthcare ETF , and the iShares Biotechnology ETF were inactive.

Inari Medical stock was up more than 21% premarket after Stryker said late Monday that it had agreed to acquire Inari for a fully diluted equity value of about $4.90 billion. Stryker shares were down 1.8% pre-bell.

Winners and Losers:

Technology

Technology Select Sector SPDR Fund advanced 0.1%, and the iShares US Technology ETF was 0.1% higher, while the iShares Expanded Tech Sector ETF was flat. Among semiconductor ETFs, SPDR S&P Semiconductor ETF gained 0.1%, while the iShares Semiconductor ETF rose by 0.7%.

Nvidia shares were up 2.5% in recent Tuesday premarket activity after the company's Chief Executive Jensen Huang delivered a keynote on Monday outlining the company's artificial intelligence plans. The company announced new partnerships and products including an AI superchip and new GeForce RTX 50 Series GPUs powered by the Blackwell architecture.

Consumer

The Consumer Staples Select Sector SPDR Fund was up 0.1%, while the Vanguard Consumer Staples Fund advanced 1.3%. The iShares US Consumer Staples ETF was inactive, and the Consumer Discretionary Select Sector SPDR Fund lost 0.3%. The VanEck Retail ETF was inactive, while the SPDR S&P Retail ETF was flat.

Toyota Motor shares were up 2% pre-bell after Japanese startup Interstellar Technologies said Toyota's research unit Woven will invest about 7 billion yen ($44.4 million) to support mass production of Interstellar's rockets.

Industrial

Industrial Select Sector SPDR Fund was flat while the Vanguard Industrials Index Fund and the iShares US Industrials ETF (IYJ) were inactive.

GFL Environmental stock was up 2% before the opening bell after the company said it had signed a deal with funds managed by Apollo Global Management (APO) and BC Partners to sell its environmental services operations for about $5.59 billion in enterprise value.

Financial

Financial Select Sector SPDR Fund advanced 0.2%. Direxion Daily Financial Bull 3X Shares was up 0.5%, while its bearish counterpart Direxion Daily Financial Bear 3X Shares was 0.3% lower.

F&G Annuities & Life shares were down 1.3% pre-bell Tuesday after closing the prior session with a 2.1% fall. The company said Monday it priced a $375 million public offering of 7.3% junior subordinated notes due 2065.

Energy

The iShares US Energy ETF was inactive, while the Energy Select Sector SPDR Fund was up by 0.6%.

Exxon Mobil stock was up 0.7% before Tuesday's opening bell, reversing the 0.1% loss in the previous session. Multiple media outlets reported Tuesday that Exxon filed a lawsuit against California Attorney General Robert Bonta and several environmental groups on Monday, claiming that they defamed and disparaged the company's plastics recycling initiatives.

Commodities

Front-month US West Texas Intermediate crude oil gained 0.7% to reach $74.08 per barrel on the New York Mercantile Exchange. Natural gas fell 1.8% to $3.61 per 1 million British Thermal Units. United States Oil Fund was up 0.8%, while the United States Natural Gas Fund was down 2.3%.

Gold futures for February were up 0.5% at $2,661.60 an ounce on the Comex, while silver futures rose 0.9% to $30.86 an ounce. SPDR Gold Shares advanced 0.6%, while the iShares Silver Trust was 1.2% higher.

President-elect Donald Trump is preparing to return to the White House and corporate America is loosening its purse strings with unprecedented enthusiasm. Several companies across sectors such as tech, automobiles, and even cryptocurrency are donating millions to Trump’s upcoming inauguration ceremony.

Large-cap giants on Wall Street, such as Toyota , Ford , and General Motors , have each committed $1 million, while Amazon , Meta Platforms , and OpenAI are matching these contributions. Ride-hailing heavyweight Uber has pledged to donate $2 million, indicating that businesses view these contributions as an opportunity to establish favorable relations with the new administration.

In this article, I have identified three companies funding Trump’s inauguration, which might enable them to deliver outsized gains in 2025.

Stock #1: Ford Motor

With a market capitalization of nearly $40 billion, Ford Motor is among the largest automobile companies in the world. It is part of a mature sector that has grossly underperformed the broader market for over two decades. For instance, Ford stock has lost 16% in the past 52 weeks and lost 25% over the past 20 years. In comparison, the S&P 500 Index is up 26% over the past 52 weeks and 403% over the past 20 years.

However, Ford recorded a strong performance in 2024. Retail sales grew by 6% year-over-year, double the industry average, primarily due to its diverse powertrain strategy. Total sales rose 4% year-over-year in 2024, while vehicle shipments soared by 9% in the fourth quarter. The company’s F-series lineup held its position as America’s best-selling truck for the 48th consecutive year, with Q4 sales rising 21% in Q4.

Notably, Ford’s electric vehicle sales (including hybrids) grew 38% to 285,291 units. The company also dominated the commercial vehicle segment, maintaining its leadership in full-size vans for the 46th consecutive year.

Priced at just 5.8 times forward earnings, Ford Motor stock is extremely cheap, given it currently offers shareholders a dividend yield of 6.1%. Out of the 19 analysts tracking Ford stock, four recommend “Strong Buy,” 10 recommend “Hold,” one recommends “Moderate Sell,” and four recommend “Strong Sell.” The average target price for the auto stock is $11.26, 14% above the current trading price.

Toyota Motor research unit Woven will invest about 7 billion yen ($44.4 million) in Japanese startup Interstellar Technologies to support mass production of its rockets, Interstellar said Tuesday.

The company said the investment is part of Interstellar Technologies' Series F funding round, with the first close scheduled soon.

Woven by Toyota will also appoint a director to the Interstellar board and help strengthen the startup's supply chains and corporate governance, it added.

Nvidia said late Monday that Toyota Motor will build its next-generation vehicles on the Nvidia Drive Agx Orin platform as a new Nvidia partner.

The upcoming Toyota vehicles will feature the Nvidia DriveOS operating system, which will provide advanced driving assistance capabilities, Nvidia said.

Financial details of the partnership were not disclosed.

Nvidia said it has also formed long-term strategic partnerships with Aurora and Continental for the use of Nvidia Drive in driverless trucks.

Nvidia said its automotive vertical business is expected to reach $5 billion in fiscal 2026.