Prediction: Nvidia could hit $150 in 2025

Nvidia (NVDA 2.24%) the stock has been one of the top performers on the market in recent years, rising 2,600% in the past five. And this year, the trend continues with Nvidia stock heading for a 150% gain. All this is due to the company’s dominance in the artificial intelligence (AI) chip market, where it holds over 80% share.

And Nvidia didn’t stop there, developing a wide range of AI products and services, helping the company deliver billions of dollars in revenue quarter after quarter. In fact, Nvidia has been on a roll, growing quarterly revenue by triple digits year over year. So now the natural question is: With all this positive momentum, where will Nvidia stock end up in 2025?

Today, Nvidia shares are trading at around $124, following the company’s 10-for-1 stock split in June. A stock split does not change the total value of a company, but lowers the price of each individual share by issuing new shares to current shareholders. This makes access to stocks easier for a wider range of investors. From this new price level, my prediction is that Nvidia could reach $150 next year as gains continue, but potentially at a slower pace than recently. Let’s find out more.

Image source: Getty Images.

Record data center revenue

First, some information about Nvidia. The company sells graphics processing units (GPUs) used to power many tasks — from gaming to AI. Gaming was actually Nvidia’s biggest business a few years ago, but as the AI ​​boom accelerated, so did Nvidia’s AI business. Data center revenue, which accounts for 87 percent of Nvidia’s total revenue, topped $26 billion in the most recent quarter — a record and a triple-digit gain over the previous year.

Other companies sell AI chips, but Nvidia’s are particularly sought after because of their speed — they’re the fastest around, and Nvidia says this high performance can save customers money in the long run. So even though I’m paying more for an Nvidia GPU today, it’s likely to have a lower total cost of ownership over time.

Companies developing major AI projects are clearly on board, as demand for Nvidia’s soon-to-be-released Blackwell architecture outstrips supply. Nvidia CEO Jensen Huang says he expects this trend to continue into next year, even as Nvidia works day and night to bring supply to the highest possible levels. In a recent interview with CNBC, Huang even said that demand for the company’s new Blackwell chip is “crazy.”

Billions in Blackwell revenue just around the corner

All of this should support the idea of ​​more earnings for Nvidia stock. The company predicts that after Blackwell’s fourth-quarter production increase, Nvidia should also see “several billion dollars” in revenue from the platform in that quarter as well. We should also expect a clear picture of how demand for Blackwell translates into earnings in the coming quarters through 2025.

If Nvidia is able to meet most of the demand and drive growth from Blackwell quarter-over-quarter, I’d expect investors to continue to hit the stock. It’s also important to note that Nvidia isn’t cheap, but it’s also not overpriced for a growth stock — at 44 times forward earnings estimates — especially given the potential for upside thanks to the company’s market cap. leadership and focus on innovation to maintain its leading position. So Nvidia stock could rise in valuation from today’s level and still remain reasonably priced.

Now let’s talk about market value. If Nvidia were to rise to $150 next year, the market cap would reach $3.6 trillion, surpassing the market giant’s value. Microsoftworth today’s $3.09 trillion. But it’s important to note that Microsoft could also move up next year, keeping it ahead of Nvidia. In any case, I would expect the two companies, both building strong positions in the high-growth area of ​​AI, to remain neck and neck when it comes to market value in the coming year.

A 20% gain.

Finally, my upside prediction to $150 represents a gain, but only about 20% from current levels. That’s not much compared to this year’s earnings so far. I’m no less bullish on Nvidia than I was at the start of the year. But in general, stocks don’t rise without stopping without a slowdown from time to time, and Nvidia, given its huge run over the past few years, may now be entering a phase of more measured gains.

And that’s actually a positive, as it would show that Nvidia stock isn’t a bubble ready to burst, but a player that has what it takes to deliver lasting gains over the long term.