Nvidia Stock Well on its way to $250–Here’s How it Gets There

Nvidia (NASDAQ:NVDA) stock keeps passing milestone after milestone. After surging past the $4 trillion market cap mark, some analysts are rushing to increase their year-ahead price targets. On the high end, one of the big names on Wall Street thinks that shares of NVDA could $250 per share, and with that, a market cap of around $6 trillion. Indeed, investors are already asking if the stock can hit a $5 trillion valuation in the second half, and here we have Loop Capital Markets analyst Ananda Baruah, who sees the stock having another 46% worth of upside from Wednesday’s close.

It’s a high bar for sure, but for one of the hottest AI plays in the market, it’s nothing that’s outside the realm of reason. Of course, a lot of things are going to need to go right for Jensen Huang’s AI chip empire to keep up the pace in the second half. Analysts already had a pretty high bar for the company going into coming quarters. It seems that the high bar has been raised even higher.

Just how high can Nvidia stock go? A $6 trillion market cap may not be all too far off.

Eventually, expectations will grow too high once analysts start accounting for the firm’s ability to keep swinging home runs. I don’t see that time happening anytime soon, though, not while mega-cap tech titans pour tens of billions of dollars on AI data centers, training, inference, edge compute, “narrow” (or applied) AI, and the rise of agentic AI.

Indeed, Nvidia may have already hit an inflection point and while much of corporate America has adopted AI, I do think that there’s a chance we’re still at the tip of the ice burg, especially as automation and other AI-driven efficiencies come to dominate the quarterly conference calls of firms across a broad range of sectors that go well beyond tech. Indeed, the AI revolution is real, and timing Nvidia’s peak isn’t going to be easy.

In any case, Loop Capital’s Baruah thinks a “golden wave” of AI adoption is upon us. He thinks it could drive overwhelming demand for new Nvidia chips, which may pave the way for a multi-trillion-dollar opportunity. Is Mr. Baruah a tad too bullish with his Street-high price target?

I’d argue not. Data centers are going up left, right, and centre. With that, a ton of (think Rubin and Rubin Ultra) hardware is going to be needed. And with so many firms still not adequately armed with enough picks and shovels to benefit from the ongoing AI gold rush, the go-to picks and shovels play in Nvidia still stands to profit as more firms show the world the chunky golden nuggets (think automation and efficiencies) they’ve unearthed in the AI revolution.

So, in short, no, I don’t view a $6 trillion market cap or a $250 target as outlandish in the slightest. Nvidia has the stage set. Now all it needs to do is walk down it.

It’s the long-term trajectory that has me most excited

In any case, the long-term (think the next 5 to 10 years) is going to be the most exciting for Jensen Huang and company, especially if Nvidia ends up raising its growth ceiling to encompass the rise of robotics, virtual reality, and the ecosystems that go with each. Just a few short years ago, before ChatGPT, Gemini, Claude, and all the sort, many folks viewed Nvidia as just a creator of graphics cards for gamers.

Nvidia didn’t suddenly transform from video-game play to AI titan overnight. Arguably, Jensen Huang told us all about the AI opportunity when analysts and investors were focused on gaming and Bitcoin mining. Now that Huang’s vision has come to fruition, I think it’s wise to take the man at his word, especially when he remarks on nascent technologies such as embodied AI (robotics) or quantum computing.

With Huang changing his tune on quantum from expecting “very useful quantum computers” in 15-20 years to noting a quantum “inflection point,” I wouldn’t at all be surprised if Nvidia is already focusing on its next big growth surge by acting as an enabler of the technology’s advancement. Indeed, perhaps AI could be the force that accelerates the quantum timeline by many years.