Investing

This AI Stock Has Surged 205%, and Could Surge Another 70% in 2025, According to Analysts

Chris MacDonald

Published: January 10, 2025 9:02 am

Nvidia (NASDAQ:NVDA) has been a top-performing stock for years, and its performance over the past year alone has been downright incredible given how high the company’s market capitalization has surged to (more than $3.6 trillion at the time of writing). Over the past year, Nvidia’s stock price has surged more than 205%, with one analyst projecting this top AI stock could surge another 70% over the course of 2025.

Now, that’s an aggressive growth target, and one that many investors may take with a grain of salt. Indeed, whenever the S&P 500 has surged by more than 20% in two consecutive years (which is a rare event), returns tend to be limited in the years following such a surge. But there’s always room for discussion around why this time is different, and at least thus far in 2025, investors appear to be taking the view that Nvidia remains a must-hold stock right now.

Let’s dive into whether a year of 70% upside could be in the cards for Nvidia investors this year.

Key Points About This Article:

• Nvidia’s incredible performance in 2024 (and 2023 for that matter) have many investors considering where this stock could be headed in 2025.
• Let’s dive into whether a 70% surge is possible for Nvidia this year, and what might lead to such a valuation.
• 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.

Where the Experts Think Nvidia Could Be Headed

Nvidia’s stock price surge has been truly remarkable, but it’s a surge that’s been driven mostly by fundamentals. The chip maker exceeded Q3 expectations with $35 billion in revenue, up 94% year-over-year. These results were driven by a doubling of data center chip sales to $30 billion, and improving expectations around the company’s Blackwell rollout. As supply chains ease globally and various geopolitical headwinds (hopefully) simmer down, some bulls are excited about the growth potential ahead for Nvidia’s high-priced computing systems. 

The key question will be if the company’s near-triple-digit top and bottom line growth rates can continue in 2025, and what the company’s forward growth rates will look like coming out of this year. On this point, opinions tend to vary widely. However, it does appear to be the case that robust demand for AI chips and Nvidia’s leading position in the high-performance computing market do point to strong growth at least for the next few years, and that’s about as far as most analysts are really willing to go out on the predictions curve with any company.

So, until we see some sort of slowdown in demand growth, most Wall Street analysts appear to feel that this stock has more upside from here. The most recent consensus price target for Nvidia stock over the next year has shares pegged around $177 per share, reflecting around 18% upside from here. That said, the high estimate on the Street calls for $220 per share which would imply upside of around 50% from here. So, it really depends on how one views the company’s forward prospects and projects out where chip demand will be one year from now that is likely to drive their individual price targets.

Big Bet on Robotics

Aside from the whole AI story (which is a big story, don’t get me wrong), there are other catalysts Nvidia investors are closely monitoring right now. One of the additional key areas of focus I think isn’t getting as much attention as it should is Nvidia’s big bets on robotics.

The company recently announced it’s targeting robotics as its next growth driver amid rising competition in AI chipmaking. The company planned to launch Jetson Thor, its latest compact computer for humanoid robots, in early 2025.

Nvidia aimed to lead the robotics revolution with a “full stack” solution, from AI training software to chips for robots. Vice President Deepu Talla highlighted a “tipping point” for physical AI, akin to ChatGPT’s impact on language models. Facing increased competition from AMD and cloud giants like Amazon and Google, Nvidia is clearly looking for additional revenue growth drivers moving forward, particularly if spending around AI and other key categories does slow in the years to come.

More revenue streams can generally be perceived to be a good thing, and I’d certainly suggest to the reader that this is most certainly the case when it comes to Nvidia. The company’s high-performance chips are used in many key functional growth areas of the tech sector. So, for those bullish on the future of robotics, AI, gaming, crypto and so many other sectors, this will remain the key stock to watch in 2025 in my view.

Nvidia Looks Like a Must-Own Stock in 2025

Investors who chose not to own Nvidia over the past two years have undoubtedly paid the price in terms of portfolio underperformance. Indeed, I think there are plenty of reasons why most Wall Street analysts would suggest that this is a trend that could continue in 2025. Given the voracity of the underlying secular growth tailwinds behind Nvidia, there’s reason to believe that this AI chip stock could lead the market higher once again in 2025.

Now, that’s not to say that risks don’t exist. We’ll have tot see how the company’s Blackwell rollout goes, and whether the Morgan Stanley prediction that Nvidia could generate $210 billion from these chips over time will continue. Additionally, rising competition from the likes of AMD and other major chipmakers could erode Nvidia’s market share in the high-performance computing market. Peers are introducing increasingly powerful chips, and this isn’t a one-horse race (entirely).

But given Nvidia’s dominant current position, and projections that Nvidia could ship 6 million data center GPUs in 2025 (generating $180–$200 billion in revenue), there’s a lot to like about Nvidia’s current forward price-earnings multiple around 32-times (which is actually lower than the Nasdaq multiple of around 33-times).