Nvidia, a leading provider of AI infrastructure chips, has seen its share price surge from around $11 in late 2022 to nearly $140 today. Despite concerns about valuations overshooting their mark, the company’s sub-50 price-to-sales ratio indicates it remains fairly valued. In comparison, quantum computing companies like Rigetti sport price-to-sales ratios over 100.
Nvidia’s consistent historical P/S ratio of 25 suggests long-lasting bullish sentiment for the stock. However, savvy investors should be aware that the tech giant is exposed to cyclical demand dynamics, which may lead to a revenue decline by 2030. To mitigate this risk, investors should prepare for potential volatility in NVDA’s performance.
Looking ahead, Nvidia’s slower fundamental growth rates could cause stock price volatility toward the end of 2025. Earnings calls are expected to be strong price catalysts over the next year. Despite this, I remain bullish on NVDA’s long-term prospects, with a potential breakout past $200 by 2025 and above $250 by 2026.
Wall Street analysts have a Strong Buy rating for NVDA, with a 28.43% upside potential over the next 12 months. The average price target is $176.86 per share. With its current market capitalization, Nvidia’s potential stock price decline would be softer on investor portfolios than its peers.
Source: https://www.tipranks.com/news/nvidia-nvda-primed-to-power-past-200-in-2025