Nvidia (NVDA, Financials) Since the AI boom began in mid-2022, NVDA) has been on an unprecedented rally, with shares up 888% to nearly $140 and market cap increasing to nearly $3 trillion I did. But as 2025 approaches, questions about whether Nvidia can maintain this pace of growth and concerns about an AI-induced bubble are weighing on the company.
However, recent analyst forecasts predict that Nvidia could reach $200 per share in 2025, but there is no guarantee of that. Cantor Fitzgerald and Trust are among the top four rated companies to watch in December, with expected price targets of $200 and $204, respectively. Elsewhere, Daiwa Securities raised its target to $160 from $125, and Morgan Stanley raised its target to $168 from $166, giving it a more conservative rating upgrade.
Nvidia’s future is highly dependent on both geopolitical risk and economic uncertainty. Headwinds will come in the form of rising inflation concerns and supply chain disruptions due to U.S.-China tensions. But analysts say that in addition to concerns about market bubbles, Nvidia’s growth could be constrained by a broader economic slowdown in 2025.
For Nvidia to reach $200 and trade at a stock price of $164, its market cap would need to reach $4 trillion, and the market cap would have to continue to rise from there. Nvidia’s AI advantages and strong fundamentals make this plausible, but there are obstacles standing in the way of such ambitious goals.
Investors remain divided as the semiconductor giant faces a critical year. Is it likely that NVIDIA’s growth story has just begun, or are expectations for 2025 too high? Only time will tell whether $200 is a milestone or a mirage.
This article first appeared on GuruFocus.
