Can Nvidia Stock Hit $300 in 2025?

When it comes to artificial intelligence (AI), one name that towers above the rest is Nvidia (NVDA). The chipmaking powerhouse has become the heartbeat of the AI revolution, fueling everything from massive data centers to advanced generative models. Thanks to its constant innovation and industry-leading technology, Nvidia has become a highly successful business, and investors can’t seem to get enough of NVDA stock. The numbers speak for themselves.

Over the past decade, NVDA stock has skyrocketed an astonishing 25,651%, transforming early believers into millionaires. Today, the company proudly holds the title of the most valuable company in the world, boasting a market capitalization of nearly $4.5 trillion and making history in July as the first-ever public firm to surpass the $4 trillion milestone.

Wall Street isn’t done betting on this powerhouse, either. Analysts at Cantor Fitzgerald recently raised their price target on NVDA stock to $300, up from $240, expressing unshakable confidence in Nvidia’s ability to lead the multi-trillion-dollar AI infrastructure buildout. So, with AI demand only growing, can Nvidia’s rally keep its momentum and surpass $300 before the year wraps up?

Founded in 1993, Nvidia has evolved from a graphics card innovator into a global leader in accelerated computing. The company’s groundbreaking graphics processing units (GPUs) in 1999 revolutionized the gaming industry and laid the foundation for modern computing. Today, Nvidia’s technologies power advancements across various sectors, including AI, automotive, and healthcare.

In fact, the California-based company has become the face of the AI revolution, and the chipmaker never fails to make headlines for its contributions in the field. Its high-performance GPUs are the backbone of AI workloads, and no one does it faster. That makes Nvidia’s chips an essential ingredient in nearly every AI data center. While competitors are scrambling to claim their share of the booming AI market, Nvidia remains firmly in the lead, supported by strong fundamentals and relentless demand for its AI chips.

The company’s transformation truly began two years ago with the rise of OpenAI’s ChatGPT, which ignited the AI boom. Since then, Nvidia’s revenue has tripled, while profits have soared, cementing its place as one of the most remarkable success stories in modern investing. So far this year, NVDA stock has surged 35%, comfortably ahead of the broader S&P 500 Index’s ($SPX) 14.5% return. Shares reached a record high of $195.62 on Oct. 10 and currently trade about 7% below that peak.

High-flying growth stocks rarely come cheap, and Nvidia is a prime example. As the undisputed king of AI chips, the market has priced in its dominance. The stock currently trades at a lofty 43.44 times forward earnings and 34.12 times sales, far above the sector medians.

The chip giant once again outperformed market expectations with its second-quarter fiscal 2026 earnings report on Aug. 27. Revenue surged 56% year-over-year (YOY) to $46.7 billion, surpassing Wall Street’s $46.1 billion estimate. This marked nine consecutive quarters of over 50% annual revenue growth, a streak fueled by the generative AI boom that began to transform Nvidia’s results in mid-2023.

The company’s data center business continues to drive growth, centered on GPUs and supporting products that enable large-scale AI workloads. The division generated $41.1 billion, or roughly 88% of total revenue, up 56% from a year ago. Nvidia’s gaming division also saw strong performance, with sales of $4.3 billion, up 49% YOY, although it has now been eclipsed by the AI-powered data center segment.

Blackwell Data Center revenue grew 17% sequentially, with CEO Jensen Huang calling it “the AI platform the world has been waiting for,” noting that Blackwell Ultra production is “ramping at full speed” amid extraordinary demand. The company did not record any H2O sales to China in the quarter but still benefited from a $180 million release of previously reserved H2O inventory, part of roughly $650 million in unrestricted H2O sales to a non-China customer.

Profitability remains strong, with GAAP and non-GAAP gross margins at 72.4% and 72.7%, respectively. Adjusted EPS rose 54% YOY to $1.05, comfortably beating estimates of $1 per share. Nvidia also returned $24.3 billion to shareholders in the first half of fiscal 2026 through share repurchases and dividends, with $14.7 billion still available under its buyback authorization.

Nvidia is projecting a strong third quarter for fiscal 2026, with revenue expected to be around $54 billion, plus or minus 2%, notably without assuming any H2O shipments to China. The company anticipates GAAP and non-GAAP gross margins of roughly 73.3% and 73.5%, respectively, signaling continued profitability. Non-GAAP margins are expected to finish the year solidly in the mid-70% range.

After recent meetings with CEO Jensen Huang and CFO Colette Kress, Cantor Fitzgerald raised its price target for NVDA stock to $300 from $240, while keeping its “Top Pick” rating of “Overweight.” Analysts pointed out that Nvidia’s strategy of “extreme co-design” and full-stack solutions like CUDA-X is helping reduce the cost gap with ASICs to an average of just 15% — a smart move that benefits both Nvidia and its customers.

Looking ahead, Cantor foresees EPS of $8 in 2026 — well above the $6.26 consensus estimate — and $11 in 2027 compared with a $7.37 consensus. Demand for AI compute is soaring, with platforms like OpenAI now generating 50% to 70% gross margins, and GPUs selling out as customers scramble to secure capacity.

Analysts also highlighted a recent surge in token usage, driven by time-based reasoning and multimodal inputs. With the rapid, wide-scale adoption of generative AI, Cantor believes this growth is real, sustainable, and far from a bubble.

The investment firm noted that, over the past year, everything from search and social media to ad recommendations and user-generated content has shifted from machine learning to generative AI. Nvidia alone sees $2 trillion in spending moving from traditional compute to generative AI, and Cantor expects the AI infrastructure market to grow to $4 trillion from $3 trillion by 2030. That represents a massive opportunity for the chip giant.

That being said, Wall Street’s faith in Nvidia remains rock-solid, with analysts overwhelmingly backing the stock with a “Strong Buy” consensus. Of the 47 analysts covering the AI darling, a majority of 40 analysts back it with a “Strong Buy,” two rate it as a “Moderate Buy,” four suggest a “Hold,” and only one analyst stands out with a “Strong Sell” rating.

The average analyst price target of $222 indicates 22% potential upside from current price levels. Meanwhile, the Street-high price target of $320 suggests that NVDA stock can rally as much as 77% from here.

On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com