All They Want for Christmas Is……..Nvidia Stock! Nvidia Stock Stokes Santa Rally Hopes

Nvidia (NVDA) shares climbed more than 1.5% in pre-market trading Monday, December 22, as the chip giant continues its record-breaking 2025 campaign. After surging roughly 33% year-to-date, the stock has become the primary engine for broader market sentiment.Claim 50% Off TipRanks Premium and Invest with Confidence Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential With the S&P 500 (SPX) currently caught in a December slump, investors are increasingly looking to the world's most valuable public company to spark a "Santa Claus rally" during the final two weeks of the year. AI Infrastructure Powerhouses Steer Market Gains Nvidia's multiyear bull run solidified its status as the most valuable company on earth this summer, and that momentum hasn't stalled. Artificial intelligence remained the dominant market narrative throughout 2025, with demand for high-end GPUs and AI factories outstripping global supply. While many defensive sectors slowed down in November, tech-heavy indexes have relied on Nvidia and peers like Micron (MU) semiconductor-revenue-upside-in-u-s-history">to offset macroeconomic jitters. Analysts note that with few major interest rate catalysts remaining until January, investor psychology and seasonal trends are now taking center stage. Historical Seasonal Patterns Favor a Tech Surge The final stretch of December is historically one of the strongest periods for equities, with the S&P 500 rising roughly 75% of the time during the last two weeks of the year. Traders are currently "snapping up" bullish options on chipmakers, betting that the Santa Claus rally will follow its historical script of 1.3% average gains. Despite concerns over stretched valuations and a 2025 "December funk," the consensus remains that if a rally manifests, it will be led by the year's clear favorites: AI-exposed tech names. Retail Conviction Holds Firm amid High Volatility While institutional volume typically thins out during the holiday season, retail investors have remained net buyers of call options for nearly the entire year. This "fear of missing out" (FOMO) could amplify price swings as the year closes. Market data shows that while some investors have begun locking in gains, the "AI trade" continues to rebound quickly from every dip. With Nvidia already outpacing S&P 500 futures on Monday morning, the stage is set for a potential year-end breakout if the "Santa rally" gathers enough emotional momentum. Is Nvidia a Buy, Hold, or Sell? Nvidia (NVDA) currently has a "Strong Buy" consensus rating. Of the 41 analysts covering the stock, 39 recommend a Buy, one suggests a Hold, and one advises a Sell. The average 12-month NVDA price target is sitting at $263.58, which implies a potential 45.6% upside from current prices.