Nvidia could go to $150 in 2025

Nvidia (NASDAQ:NVDA) The stock has been one of the market's top performers in recent years, rising an incredible 2,600% in the last five years. And this year the trend continues, with Nvidia shares heading for a 150% increase. All of this is thanks to the company's dominance in the artificial intelligence (AI) chip market, where it holds more than 80% share.

And Nvidia hasn't stopped there, developing a wide range of AI products and services that help the company generate billions of dollars in profits quarter after quarter. In fact, Nvidia is on a good run and increased quarterly revenue by triple digits year-on-year. Now the question naturally arises: With all this positive momentum, where will Nvidia stock end up in 2025?

Today, Nvidia shares trade for about $124 following the company's 10-for-1 stock split in June. A stock split does not change the overall value of a company, but rather lowers the price of each individual share by issuing new shares to existing shareholders. This makes it easier for a wider range of investors to access the shares. From this new price level, I predict that Nvidia could rise to $150 next year as gains continue, but perhaps at a slower rate than recently. Let's find out more.

Record revenue in the data center

First, some background information about Nvidia. The company sells graphics processing units (GPUs) that are used for many tasks, from gaming to AI. Gaming was actually Nvidia's biggest business a few years ago, but as the AI ​​boom accelerated, so did Nvidia's AI business. Data center revenue, which accounts for 87% of Nvidia's total revenue, was more than $26 billion last quarter – a record and a triple-digit increase from a year ago.

Other companies sell AI chips, but Nvidia's are particularly in demand because of their speed – they're the fastest on the market, and Nvidia says this high performance can save customers money in the long run. So while you'll pay more for an Nvidia GPU today, you'll likely have a lower total cost of ownership over time.

Companies developing large AI projects are clearly on board, as demand for Nvidia's soon-to-be-released Blackwell architecture outstrips supply. Jensen Huang, CEO of Nvidia, says he expects this trend to continue well into next year, even as Nvidia works day and night to bring the offering to the highest possible level. In a recent interview with CNBC, Huang even said demand for the company's new Blackwell chip is “insane.”

Blackwell's billion-dollar sales are just around the corner

All of this should support the idea of ​​further gains for Nvidia stock. The company predicts that after ramping up Blackwell production in the fourth quarter, Nvidia should also generate “several billion dollars” in revenue from the platform this quarter. We should also expect a clear picture of how demand for Blackwell impacts earnings in subsequent quarters in 2025.

The story continues

If Nvidia is able to meet the majority of demand and generate quarter-over-quarter growth from Blackwell, I expect investors to continue flocking to the stock. It's also important to keep in mind that Nvidia isn't cheap, but it's not overly expensive for a growth stock either – with forecasts for future earnings at 44x – especially given the potential for future growth thanks to the company's market leadership and focus on innovation, to keep his top spot. Therefore, Nvidia stock's valuation could increase from today's levels while still remaining fairly valued.

Now let's talk about market value. If Nvidia were to rise to $150 next year, its market cap would reach $3.6 trillion, surpassing the market giant's value Microsoftworth $3.09 trillion today. However, it's important to keep in mind that Microsoft could also rise and overtake Nvidia next year. In any case, I expect the two companies, both of which are building solid positions in the high-growth AI space, to remain neck and neck in terms of market value in the coming year.

A profit of 20%

Finally, my forecast of a rise to $150 represents a gain, but only about 20% from today's levels. That's not much compared to the gains so far this year. I'm no less positive about Nvidia than I was at the beginning of the year. But stocks generally don't rise continuously without slowing down from time to time, and Nvidia may now be entering a period of more measured gains given its huge run in recent years.

And that's actually positive, because it would show that Nvidia stock is not a bubble about to burst, but a player that has what it takes to deliver sustained profits in the long run.

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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends the following options: long $395 January 2026 calls on Microsoft and short $405 January 2026 calls on Microsoft. The Motley Fool has a disclosure policy.

The Prediction: Nvidia Could Reach $150 in 2025 was originally published by The Motley Fool