Will 2025 Be the Year of AI Agents? Insights from Nvidia's Jensen Huang

Listening to the perspectives of industry leaders on the future of artificial intelligence (AI) is crucial for investors looking to succeed. One of the prominent figures in the AI landscape is Nvidia's (NASDAQ: NVDA) CEO and founder, Jensen Huang. As Nvidia produces the hardware that powers various AI models, Huang has a unique understanding of industry trends. Recently, he highlighted a significant development: the rise of agentic AI.

Agentic AI represents an evolution in how AI is integrated into practical applications. But what exactly are AI agents, and how can investors leverage this trend? A solid starting point for this journey is investing in Nvidia.

Anticipating the Mainstream Adoption of AI Agents in 2025

Huang recently spoke at the CES trade show in Las Vegas and shared his perspective on AI agents. He remarked, "I believe this year will mark a significant rise for AI agents."

AI agents are systems designed to handle everyday tasks that traditionally require human effort. These tasks can include data entry, customer interactions, and inventory management. The development of AI is progressing past simple conversational interfaces; AI agents will perform complex, multi-step tasks that necessitate reasoning.

Nvidia is providing tools to create these AI agents, referred to as blueprints. By utilizing Nvidia's platform to develop AI agents, clients become long-term customers, which is essential for sustaining sales. Given that Nvidia's technology is foundational in AI, the introduction of an agentic AI platform reinforces its leadership in the field.

Although Nvidia's stock has experienced significant growth over recent years, there is still considerable potential for further expansion. Investors can still see solid profits by purchasing Nvidia shares today.

Nvidia's Stock Has Room to Grow Amid Strong Performances

For the fiscal year 2026, which concludes in January and includes most of 2025, Wall Street analysts are forecasting Nvidia's revenue to grow by an astonishing 52% year over year. This projection suggests that Nvidia's revenue will rise from approximately $129 billion to nearly $200 billion. This remarkable growth indicates that Nvidia remains an excellent investment choice for those looking to capitalize on the AI boom.

Numerous companies are expected to build AI agents on Nvidia's infrastructure. Some will develop agents for their internal operations, while others aim to create them for external clients. This neutrality positions Nvidia well in the market, despite its impressive stock performance in recent years.

From a valuation standpoint, Nvidia is currently more accessible than it once was. The growth of its business is aligning with its stock valuation.

At 55 times its trailing earnings, Nvidia's stock is competitively priced when considered alongside expected growth in the impending months. For reference, major tech competitors like Amazon and Apple have trailing price-to-earnings (P/E) ratios of 48 and 40, respectively, while Microsoft has a P/E of 35. In this context, Nvidia's valuation appears reasonable.

Nvidia is poised for robust growth in 2025, significantly driven by the emergence of AI agents. This trend is expected to be monumental, and Nvidia represents one of the best avenues for investment in this space. Investors should maintain a forward-looking perspective regarding Nvidia, as merely focusing on past price points will not yield favorable outcomes. The potential for gains from Nvidia is substantial, with the growth narrative around AI still unfolding.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of the board of directors at The Motley Fool. Keithen Drury holds positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Nvidia. The Motley Fool recommends long January 2026 $395 calls and short January 2026 $405 calls on Microsoft. This disclosure aims to provide transparency related to stock holdings.

AI, Investing, Nvidia