NVIDIA is still the most important stock in 2025 – Magic Post

NVIDIA is still the most important stock in 2025

 – Magic Post

Nvidia today

NVIDIA stock logo
$149.43 +4.96 (+3.43%)

Effective 06/01/2025 at 04:00 PM ET

52 week range
$49.48

$152.89

Dividend yield
0.03%

P/E ratio
58.81

Price target
$164.15

Nvidia Nasdaq: NVDA It remains the hottest stock after more than two years of dominating the stock market. Its GPU technology opened the door to artificial intelligence, and now NVIDIA is taking advantage of it using a full-stack approach. The CUDA framework is fundamental to progress that now includes a new robotics platform, universal robotics architecture, and artificial intelligence for computers. The technology includes advancements in the RTX line, the DRIVE platform, and DIGITS, software that puts AI into computers, the end game for AI.

Data centers rule the AI ​​world now, but eventually, this technology will fit in the palm of your hand; NVIDIA is well positioned to do this. Demand for its semiconductor products, including Blackwell’s, which has entered full production, will remain high between then and now.

NVIDIA Disrupts Predictions for PC AI and Self-Driving

Among the important details is the trend towards autonomous driving. The company unveiled the DRIVE Hyperion AV platform, a comprehensive autonomous driving solution built on the Thor AGX SoC. The platform and other developments in automated and robotic vehicles, including computer vision, are already being used by companies like Uber New York Stock Exchange: Uber And Toyota New York Stock Exchange: TM. Toyota has signed a partnership with NVIDIA to develop the next generation of autonomous vehicles, opening the door to expanding revenue streams and threatening companies like Tesla. Nasdaq: Tesla.

Tesla CEO Elon Musk is banking on the company’s development centered around self-driving and e-taxis that NVIDIA may disrupt. Other companies at risk from these developments include Advanced Micro Devices Nasdaq: AMD And Ambarella Nasdaq: AMBAwhich has stakes in artificial intelligence for computers and computer vision.

NVIDIA stock forecast today

12-month stock price forecast:
$164.15
Moderate purchase
Based on 43 analyst ratings
High expectations $200.00
Average expectations $164.15
Low expectations $85.00

NVIDIA stock forecast details

Analysts’ initial response to the news is good. MarketBeat tracked comments from two large companies during the first few hours of the CES keynote. These are recurring ratings and price targets from Benchmark and comments from Wedbush analyst Dan Ives, who says he’s more bullish than ever.

He believes that NVIDIA is building on its massive technological advances, expanding into new sectors, and opening the door to a $5 trillion valuation that could be reached within 18 months. That’s a potential 65% gain in market cap in less than two years for a company that has ballooned in size over the past two years. In this scenario, the Magnificent Seven would just become NVIDIA, the most valuable company on the planet.

Benchmark’s recurring target price is in line with the revision trend, increasing the consensus target price over time. In early January, the consensus was near $165, 10% above critical resistance targets, while the high range added another 2,000 basis points to it.

The sentiment trend is likely to strengthen over the next few months, so the high-end range and consensus target will continue to rise and add impetus to the market this year. Reasons to believe that estimates will continue to rise include the slate of new products expected to hit the market in the first quarter and the continued expansion of data center capacity globally.

NVIDIA’s revenue and earnings forecasts are very low

The consensus forecast for NVIDIA’s results is strong. Analysts expect growth to slow in the fourth quarter and again at F202.6, but this is due to the law of large numbers. The company will grow revenue 72% or more in the fourth quarter and 50% in 2025, down from the triple-digit pace set last year and 80% growth in the previous quarter, but the value of the dollar matters today.

A 50% gain in 2025 is equal to 400% of 2021 revenue in dollars, with full-year 2025 revenue equivalent to approximately 12 times 2021 revenue. High revenue levels are sustainable.

A rise in revenue increases profit margin and cash flow, as seen in the balance sheet details. The company’s cash stock grew 50% to more than $38 billion, leaving it in a net cash-to-gross liability position and able to maintain and increase its return on capital.

NVIDIA’s stock price reacted positively to the news, rising more than 2% in early pre-market trading. The move brought the market to an all-time high, with bullish indicators and tailwinds supporting the market. The all-time high is a critical resistance point; Moving above it will lead to another rise that could be strong. FOMO, or fear of missing out, is possible given the state of the market and improving outlook for NVIDIA’s revenues and profits.

NVDA stock chart

Before you consider NVIDIA, you’ll want to hear this.

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While NVIDIA currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.

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