Nvidia (NVDA) stock surged to a new all-time high of $154.31 on Wednesday, continuing a powerful 2025 rebound fueled by AI growth, strong earnings, and a bullish new forecast from Wall Street.
Nvidia powers AI momentum despite headwinds
Once known primarily for gaming GPUs, Nvidia has evolved into the epicenter of the global AI boom. Its chips now run approximately 90% of the world’s AI data centers, making it indispensable to tech giants like Amazon, Microsoft, Google, and Meta.
Supporting this hardware dominance is Nvidia’s powerful software ecosystem, including CUDA, TensorRT, NeMo, and DGX Cloud—all contributing to the company’s end-to-end control over AI development.
Loop Capital issues highest-ever price target
Loop Capital analyst Ananda Baruah made waves this week by raising Nvidia’s price target from $175 to $250, the highest among Wall Street analysts. He cited surging AI infrastructure investments and Nvidia’s near-monopoly on key technologies.
- Current stock price (June 25 close): $154.31 (+4.33%)
- Pre-market price (June 26): $155.75
- New price target: $250 (implying a 62% upside)
- Projected market cap: $6 trillion (up from $3.6 trillion)
“NVDA remains essentially a monopoly for critical tech,” Baruah wrote, emphasizing the firm’s pricing power and strategic importance in AI hardware.
Explosive growth in data-center revenue
Nvidia’s AI-led transformation is evident in its financials:
- Q4 FY22 data center revenue: $3.3 billion
- Q4 FY24 data center revenue: $18.4 billion (up 458%)
Following its strong Q1 earnings in late May, Nvidia’s stock has gained more than 14%, far outperforming the S&P 500’s 3.4% gain during the same period.
Global AI investment surges
Recent projections add fuel to Nvidia’s long-term story:
- McKinsey forecast: $5.2 trillion in AI and data-center investments by 2030
- Canalys report: Q1 2025 cloud infrastructure spending hit $90.9 billion (up 21% YoY)
- Loop Capital estimate: AI chip market to reach $2 trillion by 2028
Such figures underscore Nvidia’s position as a foundational player in the buildout of next-gen computing infrastructure.
Challenges in China and trade tensions
Despite the optimism, Nvidia isn’t without challenges. The company faces increased competition in China from firms like Huawei and has lost billions in revenue due to U.S. export bans on its high-end chips.
Still, investors appear confident that Nvidia’s diversified AI ecosystem and deep-pocketed client base will help it weather geopolitical turbulence.
Key Takeaways
- Nvidia stock hit a new record at $154.31 and continues climbing.
- Loop Capital raised its price target to $250, the highest on Wall Street.
- Explosive growth in AI infrastructure and Nvidia’s dominance in the space are key drivers.
- Challenges remain in China, but analysts remain bullish on long-term prospects.