Argus Research has repeatedly reviewed the Nvidia Corporation (NASDAQ: NVDA) purchases, setting a 12-month target price of $175. This recommendation follows Nvidia’s strong position in the AI sector despite competitive threats like Deepseek. Enhanced by the presence of GPU technology, the broad software ecosystem, and various industries, Nvidia’s market leadership is the basis of the generation AI market. This article is divided into Nvidia’s current performance for investors, growth outlook, and technical analysis.
Nvidia’s Market Leadership
Headquartered in Santa Clara, California, Nvidia is a global leader in visual computing and AI acceleration. The company operates in two key segments: graphics, computing and networking, covering markets such as gaming, professional visualization, automobiles, and data centers. Despite new competition with Chinese AI companies, Nvidia continues to secure control through the benefits and robust product offerings of FirstMovers, including the Blackwell Chip Platform.
Recent revenue and performance
Nvidia’s third quarter of fiscal 2025 revenue surpassed Wall Street estimates due to robust demand for AI hardware and services.
Revenue: $35.1 billion, an increase of 94% from the previous year.
EPS: Non-GAAP earnings per share reached $0.81, with consensus estimates exceeding $0.74.
Total margin: maintained at 75%, indicating strong operational efficiency.
For the fourth quarter of 2025, Nvidia expects revenues to grow by 70% per year, between $36.8 billion and $38.3 billion. Analysts are optimistic and despite competition with Deepseek, there is no downgrade in revenue forecasts.
Competitive Benefits of AI and Cloud Services
Nvidia leads commanders in the AI market through its Blackwell family of GPUs and a comprehensive CUDA software library. These assets allow NVIDIA to serve all major cloud and AI service providers. CEO Jensen Huang has further strengthened the technology’s advantage by focusing on “unusual” demand for Nvidia’s Blackwell chips.
Strategic Partnership: Nvidia works with Cloud Giants, including Microsoft Azure, AWS, and Google Cloud.
Software Leadership: NVIDIA’s NIM (Inference Microservices) technology supports enterprise-level AI deployments, enhancing scalability and integration.
Competitors like Google and AWS have introduced their own AI accelerators, but Nvidia’s early investments and ongoing innovations are ahead of it.
AI market expansion and growth forecast
The global AI market is projected to grow at a combined annual growth rate (CAGR) of 40% through 2030, potentially reaching $1.8 trillion. Nvidia’s role as a leading hardware and software provider in this industry provides significant growth opportunities across sectors such as:
Games: Nvidia is the top provider of GPUs for high-performance gaming systems.
Professional Visualization: The demand for advanced visualization technologies in architecture and engineering continues to grow.
Automotive: NVIDIA’s AI capabilities are central to autonomous vehicle development.
Despite these opportunities, Nvidia faces ongoing challenges from both established high-tech companies and agile AI startups.
Inventory performance and technical analysis
Nvidia’s shares are currently trading at $129.84, with a 52-week range of between $66.25 and $153.13. The $175 Argus target price indicates a significant increase. Here is a breakdown of the key technical indicators:
200-day moving average: Nvidia’s stock price exceeds this level, suggesting long-term bullish momentum.
Support and Resistance: Immediate support is nearly $120 and resistance is about $150. A breakout above $153 could cause more rallies.
Additionally, Argus notes that Nvidia traded at premiums to its peers, justified by accelerated growth and technical leadership.
Investor Fibonacci level
Based on recent price movements, the next Fibonacci retracement level provides practical insights to investors.
38.2% retracement: $125
50% retracement: $115
61.8% Retracement: $105
These levels act as potential entry points or areas for adding to existing locations.
Evaluation and Analyst Forecasts
Nvidia’s forward P/E ratio is 43.9, reflecting high investors’ expectations for continued growth. This rating may appear to be rising, but it coincides with Nvidia’s dominant position in the production AI and its ability to maintain robust revenue growth.
EPS 2025 EPS Estimate: $2.96
EPS 2026: $4.22
Long-term EPS growth: 14% per year.
Argus highlights that Nvidia’s strong finances, including $38.5 billion in cash reserve, provide a solid foundation for further investments and shareholder returns.
A competitive landscape
Nvidia faces competition with major semiconductor and AI hardware providers.
Advanced Micro Devices (AMD): A direct competitor in the GPU space, focusing on gaming and data center solutions.
Qualcomm (QCOM): Snapdragon platform expands to AI and automotive applications.
However, Nvidia’s technical depth and comprehensive product suite offer more durable benefits than these rivals.
Investment risks and considerations
Nvidia’s outlook remains strong, but investors need to recognize potential risks.
Market competition: Increased innovation from cloud providers and startups can disrupt Nvidia’s leadership.
Recession: Reducing business spending on technology can affect revenue growth.
Regulatory risk: Geopolitical tensions can affect Nvidia’s access to global markets.
Despite these risks, Nvidia’s diversification in multiple high-growth industries reduces many of its potential drawbacks.
Conclusion and Investor Strategy
Argus Research’s purchase rating highlights Nvidia’s unparalleled leadership in AI and visual computing. The 12-month price target is $175, and the stock offers a compelling opportunity for long-term investors. Nvidia’s ability to innovate and capitalize the expansion of the AI market places it as the basis for our modern technology portfolio.
Disclaimer: This report is for informational purposes only. Investors should carry out their own due diligence and consult with their financial advisor before making an investment decision.
