Nvidia Stock Nears Peak Again After 50% Rally — Will It Keep Rising?
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The sharp rebound follows a rough start to the year, when Nvidia shares tumbled over 35% amid U.S.-China tensions, chip export bans, and rising Chinese competition. But with momentum back and confidence returning, Nvidia's sharp turnaround is grabbing Wall Street's attention once again.
What's Driving the Comeback?
A major turning point came with Nvidia's first-quarter results on May 28. Despite losing billions in revenue from a U.S. export ban on its advanced chips to China, Nvidia still beat analyst estimates. Revenue remained strong, helped by demand from other regions and robust orders for AI infrastructure.
At the same time, Nvidia signed major supply deals with Saudi Arabia and the UAE, part of a growing trend of 'sovereign AI' as countries invest in their own data centers and computing stacks. These wins helped restore confidence in the company's long-term growth story.
Since the earnings report, Nvidia stock has jumped more than 9%, well ahead of the S&P 500's (SPX) 3.5% gain over the same period.
Wall Street Analysts See More Upside Ahead
Wall Street analysts remain bullish about Nvidia's growth prospects. They believe that Nvidia's strength across the board, from its H100 and new Blackwell chips to its CUDA software, gives it a big lead in the AI market.
Recently, Barclays' five-star-rated analyst Thomas O'Malley reiterated his Buy rating on NVDA stock and increased his price target from $170 to $200 per share. The new target price signals an impressive 35% upside from the current levels. O'Malley believes Nvidia will beat expectations in the second half of the year, thanks to stronger sales from its Compute division. He sees $2 billion more in revenue than expected for the July quarter alone. He forecasts $42 billion in Compute revenue for Q3 and $48 billion for Q4, both higher than Wall Street's estimates.
Overall, the analyst believes that growing chip production, rising system sales, and strong demand should help Nvidia boost its profits in the second half of the year.
What Is Nvidia's Stock Forecast?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 35 Buys, four Holds, and one Sell assigned in the last three months. At $173.19, the Nvidia average share price target implies a 17.10% upside potential.
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