Nvidia (NVDA) is a top AI stock on the market that is looking to mimic its incredible 2024 success this year. The company’s revenue rose over 94% in 2024 and may be on its way to eclipsing that number again in 2025.
Throughout the last year, Nvidia has dominated stock market discussions. It had increased more than 170% over the last twelve months. Moreover, it was a clear focus of the burgeoning AI sector that had seen immense demand on Wall Street. That focus will only heighten this year, with more premier companies looking to jump in on the wave that NVDA currently heads.
Nvidia’s AI accelerators and the revenue gains caused most of the growth in the stock price last year. With that, the data center segment that designs AI chips went from the company’s second-largest revenue source to producing 88% of company revenue in just three years. With the AI industry growing rapidly, that increase in production means more revenue and stock gains. Further, if Nvidia stays on this pace next year, its stock could perform even better, and perhaps reach the illustrious $4 trillion market cap club.
Nvidia Price Predictions See The Stock Making Significant Gains
Nvidia has recently been championed by Bank of America analyst Vivek Arya, as NVDA stock may be set to target $175 this year. Indeed, Arya noted that AI demand is still “very strong” across both the company’s Hopper and Blackwell platforms. Additionally, Arya predicts that, when Blackwell fully ramps, gross margins will return to the mid-70% range. Although the analyst expects volatility “until Q4 earnings,” due to Chinese restrictions, he expects a catalyst in the form of the upcoming GTC conference in March.
Other analysts on Wall Street are predicting even higher gains for Nvidia stock this year. Based on analysis from 40 Wall Street financial strategists, leading stock market price prediction firm TipRanks concluded that Nvidia stock could surge to a maximum high of $220 in 2025. That’s an uptick and return on investment (ROI) of over 60% from its current price of $135. Moreover, the analysts wrote that the average trading price for NVDA stock this year could be around the $177 level. That’s a surge of approximately 27% from its present price range.
Both retail and institutional funds are accumulating Nvidia stock relentlessly and riding the bull run that it has been offering. The buying pressure remains intact, with little to no dips in the charts. The GPU developer is leading the AI sector, making its value and demand rise across the tech industry. Long-term holders could make massive gains and see revenue growth if they hold on to the stock in 2025.
