Will 2025 Be the Year of Artificial Intelligence (AI) Agents? Nvidia's CEO Jensen Huang Thinks So.

Listening to what industry leaders say about the future of artificial intelligence (AI) is key to being a successful investor. One of the AI leaders is Nvidia's (NVDA -3.00%) CEO and founder, Jensen Huang. Because Nvidia makes the hardware that powers these AI models, Huang has a great feel for the pulse of the industry and has identified a key trend: agentic AI. This is the next step in integrating AI and using it for practical purposes. But what are AI agents, and how can investors benefit from them? Investing in Nvidia is a great place to start. AI agents will become mainstream in 2025 Huang spoke about AI agents at the recent CES trade show in Las Vegas. During a question and answer session, he stated: "I think this year we're going to see it take off." AI agents can be deployed to do mundane work that people often do. Examples could include data entry, interacting with customers, or maintaining inventory counts. Basically, AI is moving beyond a simple chat interaction. AI agents will be able to do multistep tasks that require reasoning rather than just strict knowledge. Nvidia is offering tools for building AI agents, which it calls blueprints. When clients build these agents on Nvidia's platform, they essentially lock in as long-term customers of Nvidia, which is key in driving continuous sales. Nvidia's platform has long been the standard in the AI world, and its launch of an agentic AI platform only solidifies its position. After the dominant run Nvidia's stock has been on over the past few years, investors would be forgiven if they thought the upside of Nvidia's stock was limited. However, there is still massive growth ahead for Nvidia, and investors can still make a solid profit by investing in the stock today. The stock still has room for upside with its strong growth For fiscal year 2026 (ending January 2026, encompassing most of 2025), Wall Street analysts expect Nvidia's revenue to increase by 52% year over year. That's incredible, considering that Nvidia is expected to grow revenue from $129 billion to nearly $200 billion. With that level of jumbo-sized growth in mind, Nvidia remains one of the top ways to invest in AI, as it doesn't require you to pick a winner. Many AI software companies will be building their models on Nvidia's hardware infrastructure. Many companies will build AI agents on Nvidia's platform. Some willcreated them for internal use, while others will build them to sell to their clients. This neutrality makes Nvidia a promising investment, even if it's had an incredible run over the past few years. From a valuation perspective, Nvidia isn't as pricey as it once was. Nvidia's business growth is catching up to the stock's valuation. NVDA PE Ratio data by YCharts At 55 times trailing earnings, Nvidia's stock isn't that expensive compared to its expected growth over the next few months. Considering that big tech peer Amazon trades at a trailing price-to-earnings (P/E) ratio of 48, Apple at a P/E of 40, and Microsoft at a P/E of 35, Nvidia's stock doesn't seem all that expensive. Nvidia will continue to see strong growth in 2025, partly due to AI agents. This will be a massive trend, and Nvidia is one of the best ways to invest in it. Investors need to continue looking to the future with Nvidia, as anchoring to a past price point won't do you any good. Nvidia is still a strong stock pick, and the AI-based growth story is far from over. Investors can still make a lot of money from it.