Altai the Tiger
IGNITION
streamoors
Sword Inu
NEAR Protocol
Injective
Quantus
Key Insights:
- NVIDIA stock price is soaring after the US allowed China chip shipments.
- The company trades at 39x forward earnings, making it fairly cheap.
- Technicals point to its stock surging to $200 this year.
NVIDIA stock price continued to surge this year as demand for its semiconductors jumped. It has jumped by 28% in 2025, outperforming the broader S&P Index and its top technology peers, such as AMD and Intel. This article explains why NVDA is expensive or a bargain as its market cap nears $4.3 trillion.
NVIDIA Stock Price Bullish Catalysts Remain
NVIDIA has become one of the best-performing stocks in the last decade as it continued to thrive in key technology sectors like artificial intelligence (AI), gaming, and Bitcoin mining.
As a result, its stock has jumped by over 34,000% in the last ten years, bringing its market capitalization to over $4.17 trillion today. It has even overtaken top blue-chip companies like Apple and Microsoft to become the biggest company in the world.
The main catalyst for the surge is the ongoing AI investment by companies like Microsoft, Meta Platforms, and Amazon, which account for most of its sales.
Its GPUs are the most powerful in the AI space. At the same time, it has protected its moat using the Compute Unified Device Architecture (CUDA) software. CUDA enables developers to use its GPUs for general-purpose computing.
This surging demand has pushed the company’s annual revenue from over $16 billion in 2020 to $130 billion in the last financial year. It has also become a highly profitable company, with its annual net profit rising from $4.3 billion to $72.8 billion in the same period.
NVIDIA stock price soared this month after Donald Trump allowed the company to ship some of its chips to China. This move is notable as NVIDIA had previously warned that ending China sales would have a $8 billion hit in a quarter.
NVDA Growth to Continue, Justifying the Valuation
Wall Street analysts are optimistic that NVIDIA’s revenue and profitability growth will continue for a while. Data compiled by Yahoo Finance shows that the average revenue forecast for the second quarter is $45 billion, up by 51% from the same quarter last year.
Analysts also anticipate that its forward guidance for third quarter will be $51.9 billion, while its annual revenue will grow by 53% to $200 billion.
At the same time, its earnings-per-share is expected to hit $1 in the coming results and $4.32 this year. Chances are that NVIDIA’s results will be better than estimate as it always does.
These numbers mean that NVIDIA stock price is not as overvalued as many analysts worry. According to SeekingAlpha, the company has a forward price-to-earnings ratio of 39, lower than the five-year average of 47.
Similarly, the forward EV-to-EBITDA metric of 34 is lower than the five-year average of 47. These metrics are much lower than other AI companies that are growing at a slower pace, like Palantir, which has a forward P/E ratio of 265, and Marvell Technologies.
Analysts are highly bullish on the NVIDIA stock price, with Bernstein, Piper Sandler, Cantor Fitzgerald, and Evercore having an outperform rating. The average stock target is $179, higher than the current $170.
NVIDIA Stock Price Technical Analysis
The daily timeframe shows that the NVIDIA share price has been in a strong bull run after bottoming at $86.5 in April. It formed the highly bullish golden cross pattern on May 20, confirming the bullish momentum.
NVDA stock then crossed the important resistance level at $152.80, the highest point in November last year and January this year. Moving above that level invalidated the risky triple-top pattern.
Therefore, the most likely scenario is that the stock continues to rise ahead of its earnings, which are scheduled for August 27. In this, it may jump to the key resistance level at $200. Using its outstanding shares of 24.4 billion, such a move will bring its market cap to over $4.8 trillion.
Summary
The NVDIA stock price has been in a strong bull run in the past few years, helped by the ongoing AI tailwinds. This rally may continue in the coming weeks as its top clients like Microsoft and Amazon publish their earnings and demand for its chips jump.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
