Nvidia Stock Price Target 2025: Will It Continue Growing?
Nvidia (NVDA 4.57%) stock has attracted lots of attention lately due to its spectacular short- and long-term performance. The artificial intelligence tech giant gained 121% over the last five months. Investors remain bullish about NVDA, with the Fear & Greed Index standing at 39 (Fear).
Thanks to the positive market outlook, the company has enjoyed an extended rally period, which continues. Analysts advise avoiding buying the stock now, as it might be slightly overpriced. However, some traders are already contemplating the Nvidia stock price target for 2025.
What About the Nvidia Stock’s History?
Over the last decade, the NVDA stock reported a 24,140% return increase. That means shareholders gained more than $242,000 for a $1,000 investment. While the stock will eventually slow down, it’s one of the strongest performers on the market currently. For comparison, the S&P 500 index returned only 11.3% in 2024, with its shareholders gaining 230% overall.
The stock skyrocketed in early 2023 when the demand for generative AI technology grew exponentially. The data centre AI chip market also expanded, and Nvidia was there to meet the demand. Its technology powers the ChatGPT chatbot, which is becoming increasingly popular.
While other companies also tried to conquer the data centre GPU AI chip market, Nvidia remains the leader. Intel and Advanced Micro Devices (AMD) still have a long way to go before becoming worthy Nvidia competitors. According to various reports, the latter’s GPUs have over 90% market share. Nvidia’s stock price history shows its resilience and potential for growth.
Nvidia Stock Price Predictions 2025 and 2030
The average 12-month price target for NVIDIA (NVDA) has been a strong $135.81. Analysts predict that NVIDIA stock will hit $ 231.20 per share in 2025. But that happens only if the shares continue rising at the average yearly rate. If the stock growth remains steady, the NVDA stock price will increase by 80.23%.
Moreover, the stock will hit $4,396.72 in 2030 if its current 10-year average growth rate continues. If this prediction proves right, the stock price will jump by 3,327.44%. Still, investors should first observe whether the shares achieve the Nvidia stock price target for 2025.
Various macroeconomic factors can affect its price. For example, economic slowdowns or recessions can push the stock market into bearish territory. Sometimes, even the expectation of a recession is enough to lower the stock price if many investors share it.
Overall, the analysts have set quite a high price forecast mixed up with a low of $90.00. That indicates that their expectations vary depending on NVIDIA’s future performance.
If we take a look at the average earnings that NVDA makes – it is estimated to achieve $0.64 EPS next quarter, with a range from $0.61 to $0.73. The previous NVDA history shows that NVIDIA constantly exceeds EPS and surpasses its industry average success rate of 66,15%. Thus, there is a chance that everything will turn out positively in the end.
Another positive element is that in terms of sales, NVDA is forecasted to reach $28.48 billion next quarter. The range of expectations might grow to reach $32.00 billion. It is even predicted that NVIDIA will achieve a success rate of 100.00% compared to the industry’s 65.21% average.
These insights give analysts a hopeful sentiment that promises positive outcomes. If the stock keeps projecting continued growth and strong performance, it might even reach new highs. However, opinions split and there are other analysts who also advise not to buy this stock now. Before you make any decisions, make sure you do the research yourself. Compare the predictions of several analysts, and make sure you check out other data centres on NVIDIA.
Wall Street analysts have severely underestimated the NVDA stock’s potential for growth. Their predictions for the recent four quarters are lower by 17% compared to what the stock gained. Thus, investors might consider adding several per cent to Wall Street’s earnings estimates in NVDA’s favour.
While no one argues that the stock continues growing, the Motley Fool Stock Advisor analyst team decided not to add Nvidia to their list of 10 stocks that could produce gigantic returns in the coming years.
Is Nvidia a Good Stock to Buy?
Well, we can’t make a final decision for you about whether you want to invest in NVIDIA Stock, but we can offer you a list of positive and advantageous characteristics that this stock offers.
Nvidia has a reputation as a compelling stock to buy, and here are the reasons why:
1. NVIDIA is diverse! The company has been constantly diversifying its revenue income. This includes data centres, automotive markets, gaming, etc. The diversification ensures that future risks are mitigated.
2. NVIDIA has a rich history of strategically acquiring partnerships that enhance market reach opportunities.
3. NVIDIA is very good at capitalizing on existing trends. It has a very strong focus on innovation and cutting-edge technology and consistently invests in the development of up-to-date products.
Keeping this information in mind – when making an investment decision, it’s important to weigh all factors carefully. This includes assessing the company’s financial performance, its history, current market position, whether it has growth prospects, what analysts are saying and potential risks.
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