Reddit (RDDT 2.50%) stock has been on a tear this year. The social media platform and news aggregator's share price has rocketed 62% higher across 2025's trading, thanks to emerging opportunities in the artificial intelligence (AI) space.
Meanwhile, Nvidia (NVDA 2.83%) has gained approximately 32% year to date, but is still up an incredible 678% over the last five years. Could Reddit be in the early stages of delivering an Nvidia-like run?
Image source: Getty Images.
Is Reddit stock on the verge of an incredible winning streak?
Reddit's share price has seen massive gains since its March 2024 IPO, as the company's social platform has become an increasingly popular data source for training large language models (LLMs). With its last quarterly report, Reddit reported a sales increase of 78% year over year to reach $500 million. Meanwhile, the business posted a stellar gross margin of 90.8%. The company also guided for sales to come in between $535 million and $545 million in the current quarter -- suggesting that strong sales momentum is poised to continue in the near future.
Reddit stock now has a market capitalization of roughly $49.5 billion and is valued at approximately 24 times this year's expected sales. The company's platform has become one of the top destinations for data used to train LLMs, and it looks like this will continue to be true in the near term.
While matching Nvidia's stock performance over the last year is a tall order, there are good reasons to think that Reddit is poised to keep crushing the overall market. For risk-tolerant investors seeking potentially explosive AI plays, Reddit stock looks like a worthwhile portfolio addition right now.
