Can NVIDIA Really Hit $200 This Summer?

Some stock traders love NVIDIA (NASDAQ:NVDA) while others love to worry about its lofty valuation. A renowned processor producer and artificial intelligence (AI) trend beneficiary, NVIDIA remains a darling of the market in 2025.

Meanwhile, NVIDIA CEO Jensen Huang is rolling in the dough with a mind-boggling $140 billion net worth. Yet, not everyone is optimistic about NVDA stock and the share-price predictions range from ultra-bullish to massively bearish.

Amid the slew of summertime prognostications, the $200 share-price objective remains tantalizing for NVIDIA’s die-hard investors. Could NVDA stock maintain its momentum and actually reach $200 within the next couple of months? Anything’s possible as the king of AI-enabled processors seeks to maintain its industry dominance in 2025’s second half.

A High but Justified Valuation

If there’s any reasonable objection from the bearish camp, it’s that NVDA stock recently went too high, too fast. I’ll admit, the stock’s chart does appear to be a bit frothy lately.

Other skeptics will point out that NVIDIA has a trailing 12-month price-to-earnings (P/E) ratio of approximately 54x. That’s not exactly dot-com bubble territory, but anything above 50x may raise a red flag for deep value enthusiasts.

Keep in mind, though, that a company’s P/E ratio can stay elevated and the share price can continue to rise for quite a while. This is particularly possible when the company is a market darling and an industry dominator, and when the company recently demonstrated sales and profit growth.

NVIDIA happens to check all of those boxes. The company is a powerful sales grower, having increased its revenue by 69% from $26.044 billion in the year-earlier quarter to $44.062 billion in the quarter ended April 27, 2025.

During that same time frame, NVIDIA grew its net income by 26% from $14.881 billion to $18.775 billion. That’s even more impressive when we recall that some people were in panic mode about U.S.-China trade frictions in March and April.

CEO Share Sale a Warning Sign?

We’ll get back to the U.S.-China trade dynamic in a moment. Before that, however, we need to address a news item that occurred not long ago.

Much ado has been made about Huang’s recent sale of 225,000 NVIDIA shares followed by an additional sale of 75,000 shares, for a total of 300,000 shares sold. Does this suggest that NVIDIA’s CEO is giving up on his company? 

Not at all. For one thing, these sales are part of a share-sale plan that adopted back in March. So, none of Huang’s recent stock sales should come as a surprise to anyone.

Furthermore, executives sell stock shares for a variety of reasons. Sometimes, a CEO might want to trim his stock position, take some profits, allocate capital elsewhere, and/or maneuver for tax purposes.

In any case, the two Securities and Exchange Commission (SEC) filings showing the share sales both indicate that Huang directly held at least 74 million NVIDIA stock shares. Therefore, Huang’s unloading of 300,000 shares is merely a blip on the radar.

Betting on a Rock Star

Besides NVIDIA’s powerful profit potential, the company has a CEO who has become a folk hero in the age of AI. Ultimately, if anything can propel NVDA stock to $200 this summer, it’s what I call the “Huang halo effect.”

Remember, the sentiment surrounding U.S.-China trade tensions has shifted dramatically since April. Inflation hasn’t gone “sky-high in July” as some pundits feared it would, and stock traders have released their animal spirits in mid-2025, pushing the NASDAQ 100 to fresh heights.

Moreover, the U.S. government just lifted its restriction from April in which NVIDIA needed a license to sell its H20 chips to China. This lifting of export controls on NVIDIA should have a positive effect on the company’s sales figures and could buoy the stock price throughout the summer.

Amid this encouraging backdrop, Reuters reporters observed that Huang maintains “rock star status” in China. There, the NVIDIA CEO engages in interviews, take selfies with his fans, and signs leather jackets (“a signature clothing item of the billionaire”) for his admirers.

Truly, Huang is an ambassador of AI in both America and China. He could end up doing more to ease Sino-U.S. trade frictions this year than any government envoy can.

If the stock market is a voting machine in the short term (to loosely quote Benjamin Graham), then I expect Huang and NVIDIA to garner a lot of favorable votes this summer. Most likely, the trend will be every NVDA stockholder’s friend and, if I’m right, $200 will be achieved before the summer’s end.