Nvidia (NASDAQ:NVDA) stock has edged up from $138 to $142 over the past week, a small move for a typically volatile stock. In this article, we will share what the street is saying about NVDA stock.
Aswath Damodaran
Aswath Damodaran, a finance professor at New York University’s Stern School of Business, thinks Nvidia (NASDAQ:NVDA) is overvalued. He explained his position in a conversation with CNBC reporters, saying:
“When you buy at this price, I think you expect the market for your products and services to be much larger than people expect. You need to be clear that this is the basis for your purchase. AI Even assuming Nvidia’s dominance in the chip market (which I believe it still is) and its ability to maintain these very high profit margins, unless something additional happens, $144. You can’t justify the valuation of it. It’s a tough call because it’s like betting that Nvidia will find another market and dominate it.”
Like Damodaran, investment advisor Trefis Team believes NVDA stock is overvalued, although it trades at about 48 times estimated 2025 earnings. The company believes rival chipmaker AMD offers a more attractive entry point for investors looking to jump on the AI bandwagon, at 28 times forward earnings.
While some believe the current price is not justified, Denmark-based Saxo Bank believes Nvidia stock could reach $250 by the end of 2025. That would give it a market capitalization of $7 trillion, according to chief macro strategist John J. Hardy. He considers Nvidia to be a “major seller in the AI gold rush” and predicts it will account for 10% of the global stock market next year.
Although less bullish than Hardy, analysts at Phillip Capital also recently raised their price target on NVDA stock from $155 to $160, but lowered their rating on the stock from “buy” to “accumulate.” Yik Ban Chong, analyst at PhillipCapital, said:
“Hyperscaler is upgrading its AI cloud capabilities to capture cloud service opportunities from AI generation startups. H200 Hopper sales reach ‘double-digit billion’, fastest product growth in company history increased to. NVDA has provided guidance that demand will continue until at least the second half of 2026.”
But that’s not all, Chong also highlighted the potential impact of increased trade tariffs between the US and China on NVDA stock.
“Due to the escalation of the US-China trade war that began in July 2018, NVDA’s stock price has fallen more than 50% from its October 2018 high.If similar tariff policies are reimposed, NVDA’s share There may be a significant impact on the price. “
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