Can NVIDIA Stock Price Surge to $250 as BoFA, Morgan Stanley Predict?

NVIDIA stock price continued to hover near its all-time high amid highly bullish catalysts. NVDA, the biggest company in the world, jumped to $178.60 on Monday, a few points below the record high of $183. Can it jump to $250 as analysts from Bank of America and Morgan Stanley expect?

Most Analysts are Bullish on NVIDIA Stock Price

NVIDIA share price has been in a strong bull run in the past few years, helped by the robust tailwinds in the artificial intelligence (AI) industry. After bottoming at $86.80 in April, it has soared by 105% to $178 today.

Wall Street analysts are bullish in NVDA stock, which they believe has more upside to go. Yahoo Finance data shows that the average stock forecast is $182m, slightly up from the current level.

Bank of America (BoFA) and Morgan Stanley analysts are some of the most bullish. In their most recent calls, these analysts predicted that NVDA share price has more upside that could push it to $250, up by 40% above the current level.

Assuming its outstanding shares remains at 24.48 billion, a surge to $250 would push its market capitalization to over $6.12 trillion, bigger than the current valuation of Alphabet, Amazon, and Meta Platforms combined.

NVIDIA Tailwinds Remain

These analysts believe that NVIDIA has numerous tailwinds that will boost its stock in the long term. One of these catalysts is the recent approval by the Donald Trump administration to end its embargo on chip shipments to China, one of the biggest chips consumers globally.

The start of these shipments could lead to over $8 billion in additional revenue each quarter. More of these tailwinds will happen when the US and China reach a trade agreement, possibly this month.

Further, some of the biggest NVIDIA clients and “proxies” have published strong financial results recently. For example, Taiwan Semiconductor’s second-quarter revenue jumped by 44% to over $30 billion in Q2. This is notable since it is NVIDIA’s biggest supplier.

Clients like Amazon, Microsoft, Alphabet, and Meta Platforms all published strong results and committed to more data center spending. Microsoft, which accounts to nearly 20% of NVIDIA’s revenue, is spending $30 billion in data centers this quarter.

Therefore, these tailwinds mean that the artificial intelligence boom will continue, benefiting NVIDIA, the industry’s largest player.

NVDA Valuation Can be Justified

One of the top concerns among investors about NVIDIA stock price is its valuation as its market capitalization nears the $5 trillion milestone.

A closer look at its growth and valuation metrics shows that the valuation can be justified. For one, NVIDIA has a forward price-to-earnings ratio of 40, much higher than the S&P 500 Index’s 24. NVIDIA is growing faster than the S&P 500 Index by far.

While the multiple is high, it is lower than the five-year average of 47. Also, the PEG ratio, which is a modified form of PE that incorporates growth is 1.4, lower than the sector median of 1.80.

NVIDIA Stock Price Technical Analysis

The weekly timeframe chart shows that the NVDA stock price has surged and moved above the key resistance point at $152, the previous all-time high.

It has remained above all moving averages, indicating that bulls are in control. However, there is a sign that the stock is getting overbought. The Relative Strength Index (RSI) has moved to the overbought level, while the Stochastic Oscillator slowly forms a bearish divergence pattern.

Therefore, the most likely NVIDIA stock price forecast is bullish, with the initial target being at $200.

It may then retreat briefly to $152, as it forms a mean reversion, where an asset moves back to its historical mean. The stock will then jump to $250 by the end of the year or in 2026.