NextFin news, On November 25, 2025, US and UK markets spotlighted ITM Power (LSE: ITM), a UK small-cap specialising in green hydrogen electrolysers, amidst comparisons to Nvidia, the American semiconductor giant known for explosive growth. According to a report published by The Motley Fool UK, ITM Power was the most bought stock on the AJ Bell platform on November 24, trading at 72p with a market capitalization of approximately £449 million. The report highlights its nearly 200% stock price increase since March 2025 and questions if ITM Power may emerge as the ‘next Nvidia’ in terms of growth potential. ITM Power develops and manufactures industrial electrolysers that produce green hydrogen—a clean energy source—from water using renewable electricity. Its flagship NEPTUNE V units target mid-scale green hydrogen projects, with applications spanning heavy industry, transportation, energy storage, and chemical manufacturing. The company reported FY25 revenue growth exceeding 50% to £26 million, an order backlog surpassing £145 million (up nearly 90% year-over-year), and projects FY26 revenue to rise by another 50%, potentially reaching £35–40 million. Analysts forecast revenues nearing £78 million by FY27. However, ITM is currently not profitable, with an expected adjusted EBITDA loss of £27–29 million in FY25, primarily due to rising factory costs and recognition of revenue on legacy loss-making contracts.
In contrast, Nvidia, with a market valuation in the hundreds of billions, has demonstrated a meteoric stock price increase of about 22,700% over the past decade fueled by its capital-light business model focused on chip design and AI technology leadership. Nvidia’s profitability is world-renowned, underpinned by high-margin products and efficient capital allocation, outsourcing manufacturing to partners like TSMC.
ITM Power’s situation is qualitatively different due to the capital-intensive nature of electrolyser manufacturing, involving expensive facilities and complex supply chains. These factors result in ongoing losses that weigh on near-term profitability. Moreover, the valuation of ITM at roughly 10 times forward sales appears demanding, reflecting investor optimism but accompanied by inherent risk.
Nonetheless, the underlying green hydrogen market presents a compelling long-term growth thesis. According to a 2020 Goldman Sachs report, the global addressable market for green hydrogen could reach €10 trillion by 2050, aligning with global net-zero ambitions. This immense potential places ITM Power in a strategically advantageous position as governments and industries shift towards decarbonization. The company’s order backlog growth and accelerating revenues validate rising market adoption and acceptance of its technology.
Comparing ITM Power to Nvidia provides a valuable perspective on different growth models within transformative technological sectors. Nvidia’s historic growth was enabled by intellectual property-driven competitive moats, scalability, and rapid innovation cycles, paired with a capital-light manufacturing strategy. ITM Power operates in a nascent, capital-intensive industry where market penetration requires substantial upfront investment, manufacturing scale-up, and capacity utilization improvements to achieve profitability. Despite these challenges, ITM’s leadership in containerized electrolysers for mid-scale projects and an expanding order book indicate the company is moving from development to commercialization, which is a critical growth milestone.
Investors should weigh ITM Power’s current financial losses and valuation against the expanding hydrogen market and the company’s execution capacity. The clean energy transition, supported by increasing regulatory mandates and rising fossil fuel substitution, forms a macroeconomic tailwind. Moreover, geopolitical and policy factors — such as the Biden administration’s support for green energy in the US, and similar initiatives under President Donald Trump’s administration since January 2025 that balance economic growth with energy security—may affect international demand dynamics and supply chain stability in the hydrogen sector.
Looking ahead, ITM Power’s ability to scale production, reduce costs, secure strategic partnerships, and continuously innovate will determine whether it can emulate the transformative impact Nvidia has had in semiconductors. The potential for hydrogen to underpin several sectors’ decarbonization strategies offers substantial upside if timing, technology, and market conditions align favorably. However, investors must remain cautious of execution risks, capital requirements, and competitive dynamics.
In summary, while ITM Power is unlikely to replicate Nvidia’s explosive margin-rich growth model in the short term, it represents a compelling growth story within the rapidly growing clean energy transition. The company’s recent commercial traction and expanding market opportunity support a forward-looking view of significant growth potential, albeit with elevated risks typical of an evolving industrial technology enterprise. As the green hydrogen market matures over the coming decades, ITM Power’s strategic progress will be a key bellwether for investors focusing on sustainable energy innovation.
According to The Motley Fool UK’s analysis published on November 25, 2025, while ITM Power should not be considered a direct analogue to Nvidia, its role as an early leader in the green hydrogen economy and its accelerating revenue growth warrant attention from adventurous growth investors seeking exposure to the energy transition’s next frontier.
Explore more exclusive insights at nextfin.ai.