Nvidia (NASDAQ:NVDA) is perhaps the most consequential semiconductor maker of our time. The high-performance chip maker has seen its valuation skyrocket in recent years, in large part due to hefty demand for the company’s chips which power everything from AI to gaming, crypto, and other high-growth applications in the past.

When one catalyst has gone away (be it crypto or gaming or a host of other innovative applications), a new catalyst has popped up that’s driven Nvidia’s meteoric rise up the market capitalization rankings. Right now, this stock market is all about artificial intelligence, and Nvidia’s chips provide the backbone for the AI revolution.

Now, AI hype has begun to wane a bit, and Nvidia has certainly seen its stock price reflect this sentiment. From a high of more than $140 per share this year, NVDA stock has since dropped to around $115 at the time of writing. That’s still good for a market capitalization of $2.8 trillion, but it still means this stock would need to appreciate around 18% from here to make new all-time highs.

Let’s dive into where Nvidia might trade over the course of the next year.

Key Points About This Article:

• Nvidia remains the dominant high-performance chip maker in the market, and continues to be one of the most valuable companies in the world.
• With so much growth already priced into the company’s valuation, let’s dive into where the stock may be headed over the next 12 months.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Can Nvidia’s Strong Performance Continue?

Nvidia has certainly been among the best-performing stocks in the market in recent years. Surging to a market capitalization of more than $3 trillion in June, Nvidia briefly became the world’s most valuable company on this metric and many others.

However, despite the company’s impressive growth, the company’s stock price has faltered following its highly-anticipated Q2 earnings report. Revenue surged 122% year-over-year, driven by strong data center chip demand. This business unit in particular saw 154% growth, and continues to be the core driver of the company’s exceedingly incredible growth rate, particularly for a company of this size.

Now, the question of course for many investors is whether this strong performance can continue. The company has seen strong demand from key mega-cap tech companies, which are all racing to develop the latest and greatest AI technology to bolster their core businesses. The amount of demand that’s been pulled forward as a result of this spending surge remains to be seen. And a divergence among investors who are betting on a continuation of strong spending for years to come, and those who see a drought on the horizon, appears to be widening.

Herein lies the risk with Nvidia stock, with many investors appearing to remain wary at least over the short-term in regards to where this stock could be headed.

Strong Forward Growth Expectations

Since 2020, Nvidia’s remarkable share price growth has blown many investors away. Those who have simply held onto NVDA stock over the past five years are up more than 24X – that’s a truly remarkable return that has priced in a great deal of growth over the long-term.

The thing is, Nvidia continues to provide higher and higher forward revenue and earnings growth estimates, and this past quarter was no different. Nvidia’s management team raised their guidance for the current quarter (the company’s fiscal third quarter of 2025) to $32.5 billion. This number far exceeded consensus estimates of $31.7 billion for this quarter, and brings the company’s forward multiple down.

The question is whether current recessionary risks may bleed through to Nvidia’s bottom line, should a downturn materialize. The thinking among many in the market is that R&D spending on AI initiatives may remain important regardless of a downturn, and if there is a downturn, many tech companies may weather the storm better than companies in other industries. But there’s certainly plenty of skepticism building in the market with respect to Nvidia’s increasingly high hurdles, and the beats that are required to push this stock price higher.

Nvidia’s anticipated long-term revenue growth rate sits at around 60%, making its trailing 56-times earnings multiple relatively attractive. Again, these expectations are certainly high, so we’ll have to see if the chip maker can continue to pole vault over an ever-increasing bar in the coming quarters. That’s the key decision point for most investors.

Analysts Remain Bullish on Nvidia Stock

Wall Street analysts continue to take a very bullish view of Nvidia stock, with all 36 analysts covering the stock rating Nvidia as a buy or strong buy. That’s not surprising, considering any analyst that’s downgraded Nvidia during this cycle has put his or her job at risk. Indeed, until Nvidia’s outperformance shows true signs of cracking, this is a stock that many feel is one that can only be played from the long side. 

I’m of the view that Nvidia’s forward multiple (particularly with its recent guidance raise) is actually reasonable. I’ve been skeptical of this stock in the past, in large part due to fundamental reasons. But assuming the company can continue to grow at its current rate for another two to three years, and growth comes down considerably from there, this is still a stock that could provide meaningful upside, particularly on any additional dips.

With some analysts projecting earnings per share could come in as high as $5 next year, putting a 40-times multiple on that would get investors to $200 per share. That’s perhaps overly bullish, but it’s certainly a prediction that’s worth considering.

In my view, if Nvidia drops below the $100 level at some point during this market cycle, it’s a screaming buy. At current levels, I think most investors can own and hold the stock. And for those who are bullish, it’s hard to disagree with adding to a position here.

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