Nvidia’s stock is expected to skyrocket past $200 in 2025 due to strong demand for its graphics processing units (GPUs) used in artificial intelligence (AI) data centers. The company’s latest Blackwell architecture offers significant performance gains, leading to substantial cost savings for customers.
With a dominant market share, Nvidia has pricing power, boosting its profit margins. Wall Street estimates suggest the company’s earnings per share could increase, resulting in a potential 82% stock price increase. Microsoft is reportedly one of the largest buyers of Blackwell GPUs, which will be used to develop AI and rent computing capacity to other developers.
Nvidia’s revenue growth is forecasted to slow, but it remains lightning-fast. The company’s fiscal year 2025 revenue is expected to reach a record high of $195.4 billion, with a growth rate of 51%. However, this represents less than half the growth rates seen in previous years.
Nvidia’s pricing power and profit margins are key drivers of its stock price forecast. With a forward P/E ratio of just 32.1, the stock will need to increase by 82% to trade in line with its 10-year average P/E of 58.6. This implies a potential stock price of $259.
Investors should consider several factors before investing in Nvidia’s stock. The Motley Fool Stock Advisor analyst team identified 10 best stocks for investors, and Nvidia was not included. However, the company has made significant returns in the past, including a return of $827,780 for investors who purchased the stock at its recommendation on April 15, 2005.
Source: https://finance.yahoo.com/news/prediction-nvidia-stock-going-soar-093200381.html