TLDR
- Barclays raised Nvidia’s price target to $200, suggesting a potential 38% stock increase to reach nearly $5 trillion market cap
- The Blackwell AI platform is seen as a key growth driver with healthy usage levels and mass production expected in Q3
- Nvidia controls over 80% of the AI accelerator market and reported 427% year-over-year data center revenue growth
- Multiple analysts maintain bullish forecasts despite the stock trading at over 40x forward earnings
- Compute revenue expected to grow mid-teens in upcoming quarters with improved gross margins in second half of year
Nvidia’s meteoric rise shows no signs of slowing down. Wall Street analysts are now eyeing a potential $5 trillion valuation for the AI chip giant.
Barclays analysts just raised their price target to $200 per share. This represents a potential 38% increase from current levels.
The new target would push Nvidia’s market capitalization to approximately $4.9 trillion. That would cement its position as the world’s most valuable public company.
Rosenblatt Securities analyst Hans Mosesmann maintained his own $200 price target this week. UBS and Goldman Sachs have also pointed to the company’s dominant market position.
The stock has already climbed more than 3,000% over the past five years. Shares are currently trading near all-time highs.
Nvidia’s stranglehold on the AI accelerator market remains impressive. The company controls more than 80% of this crucial sector.
Data center revenue jumped 427% year-over-year in the latest quarter. This segment drives the generative AI and cloud infrastructure buildouts that power modern computing.
Blackwell Platform Fuels Growth Optimism
The Blackwell AI platform stands out as a key growth catalyst. Analysts note healthy usage levels across the platform.
Barclays expects strong adoption of agentic AI software in the second half of 2025. These systems can perform tasks with minimal human oversight.
Compute revenue should grow in the mid-teens for both October and January quarters. Blackwell Ultra chips are on track for delivery.
Small volumes of Ultra chips will arrive by quarter’s end. Mass production is scheduled for the third quarter.
Higher Blackwell shipments should boost gross margins in the second half. The adjusted gross margin fell from 78.9% to 61% in the fiscal first quarter.
Market Position Remains Strong
Nvidia’s proprietary CUDA software reinforces its competitive moat. The tight integration with Taiwan Semiconductor Manufacturing adds another layer of protection.
Leading-edge GPUs like the H100 and upcoming Blackwell series maintain pricing power. Free cash flow now exceeds Amazon’s levels.
The company reported more than $14 billion in quarterly profits. This helps justify the current $2.9 trillion market cap as of June 18.
Competition from Advanced Micro Devices and Intel continues to intensify. Both companies are investing heavily in AI chip development.
However, these rivals currently trail Nvidia on execution and market share. The gap remains substantial across key performance metrics.
Geopolitical tensions between the U.S. and China pose ongoing risks. Export restrictions could impact manufacturing pipelines and chip sales.
The stock trades at over 40x forward earnings, raising some valuation concerns. Analysts continue monitoring these headwinds while maintaining bullish outlooks.
Nvidia’s market capitalization rebounded to $3.3 trillion in May 2025 following earlier volatility. The company overtook Microsoft to become the world’s most valuable publicly traded firm in June with a $3.4 trillion market cap.
