Nvidia Stock Rises. Why It's Poised to Drive the Market's Santa Rally. -- Barrons.com

Dow Jones12-22 20:13

By Jack Denton

This has been Nvidia's year, and the final two weeks of 2025 give the stock one more opportunity to prove it.

Investors are facing down the final two weeks of 2025, and for the stock market that means lower trading volumes -- and the potential for higher volatility -- as well as hopes for the much-lauded Santa Claus rally.

If stocks follow history and surge to finish the year, Nvidia could be the winner. With futures tracking the S&P 500 index up 0.4% on Monday, but with Nvidia shares already 1.5% higher in U.S. premarket trading, that trend may already be playing out.

Artificial intelligence was a key theme for the stock market this year, with demand for AI products, computing, and infrastructure seeing AI-exposed tech names leading the way higher.

Nvidia has become the byword for AI winners. The stock's multiyear bull run continued in 2025 as it became the most valuable public company, with the shares gaining another one-third in value this year -- no small feat for a multitrillion-dollar name.

Stock are currently in a December funk, with the S&P 500 stagnating in what is historically one of the best months for markets. But Wall Street is hoping the stars align for a year-end rally, and it only makes sense for Nvidia to lead it.

Along with AI, the other major narrative for markets this year has been the outlook for U.S. interest rates. But there are few macroeconomic catalysts on tap until January, which will likely mute shifts in investor expectations over rates that typically move stocks.

If investors make a Santa rally a reality, they may be likeliest to turn to this year's favorites: the AI names, and Nvidia chief among them.

After all, if there is one thing 2025 has taught investors, it is the power of narrative in driving stocks higher -- and those who have bet against AI have been repeatedly burned.

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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December 22, 2025 07:13 ET (12:13 GMT)

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