The US stock market has finally turned around after a month of poor performance. That has been true specifically for the Magnificent 7, as the mega-cap shares have looked to rebound from plummeting values throughout April. Among them is Nvidia (NVDA), which is facing a $1 trillion opportunity with its stock facing a notable 50% upside for this year.
The AI chipmaker has been one of the most promising stocks for the last two years after jumping more than 174% over the course of 2024. Things went far differently this year, as macroeconomic circumstances threatened its potential gains. Yet, that could be in the rearview mirror as the company’s value faces a key point.
Also Read: Why Magnificent 7 Stocks are Rallying Today: AAPL, AMZN, & More
Nvidia Debuts Potential Game Changer as Stock Nears Turning Point
Despite back-to-back fantastic days, the US stock market was flat on Friday. Indeed, the Dow dropped around 200 points as both the S&P 500 and Nasdaq had jumped less than 1%. However, that shouldn’t undermine a week that will be one of the most important of the year.
With earnings reports abounding, a host of mega-cap stocks performed well. Perhaps the hottest tech stock of the last two years, Nvidia (NVDA), was among them, with the company entering a $1 trillion opportunity and 50% upside on the horizon.
Also Read: Nvidia (NVDA) Too Cheap to Ignore: Is Now the Time to Buy In?
Specifically, Nvidia recently debuted its new software platform, NeMo. The arrival is an interesting one, as its presence could be a monumental game-changer for the company and the AI industry. The microservice is set to increase the company’s presence in autonomous AI agents. Moreover, these should eventually replace enterprise software in the near future.
Autonomous AI agency is a $1 trillion market opportunity. With the demand for AI assistance growing by the day, Nvidia’s brand awareness could help it capitalize on that. Moreover, it could help offset any pain they would feel from the ongoing tariff turmoil and brewing US-China trade war.
Currently, the stock has a median price target of $160, up 46% from its current position. Additionally, after returning to the $109 level, it has 116% upside, with a high-end projection sitting at $235, according to CNN. Alternatively, it faces just 8% downside risk with a $100 bear-case outlook.
