Nvidia made headlines in 2024 with an extraordinary $2 trillion increase in its market value, driven largely by the surge in demand for artificial intelligence (AI) technology. Shares of the chipmaker soared by 178% last year, making it one of the best performers in the S&P 500.
Despite its already impressive valuation, analysts are predicting even more growth for Nvidia in 2025. Wall Street is optimistic about strong chip sales, rising AI investments, and the highly anticipated release of Nvidia’s next-generation Blackwell chip.
What Wall Street Expects from Nvidia in 2025
1. Nvidia to Remain the Top AI Player
Nvidia is expected to maintain its dominance in the AI sector, with Wedbush Securities ranking the company as the top AI tech winner for 2025. The firm forecasts a significant ramp-up in AI spending, predicting $2 trillion in capital expenditures over the next three years.
Wedbush analysts highlighted Nvidia’s critical role in the AI revolution, with the company being described as “the Godfather of AI.” As the only major player providing specialized chips for AI, Nvidia is poised to remain at the forefront of the industry.
Despite concerns over potential challenges in 2025, such as the Federal Reserve’s actions or trade tensions with China, analysts see these as opportunities for savvy investors to capitalize on the tech sector’s long-term growth.
2. Blackwell Chip Launch Could Be a Game Changer
The launch of Nvidia’s Blackwell chip in 2025 is expected to be a major catalyst for the company’s stock. Analysts from Morgan Stanley suggest that if Blackwell performs as expected, it could overshadow any concerns about Nvidia’s chip demand or competition.
“There are transitional pressures,” said Morgan Stanley analysts, “but by the second half of 2025, the focus will be on the strength of Blackwell.” The hype surrounding the chip has already generated significant attention, with CEO Jensen Huang noting “insane” demand during his remarks last year, sparking optimism for Nvidia’s future earnings.
Morgan Stanley reiterated its “overweight” rating on Nvidia, setting a price target of $166 per share, indicating a 21% potential upside from current levels.
3. Key Catalyst Expected in January
A potential catalyst for Nvidia’s stock could come as soon as January, following CEO Jensen Huang’s keynote speech at the Consumer Electronics Show (CES). The event, taking place from January 7 to January 10, will feature Huang’s address on January 6, followed by a Q&A session with analysts.
Citi analysts anticipate that Huang’s speech will further boost expectations for Blackwell’s sales and raise investor confidence in Nvidia’s prospects. Citi analyst Atif Malik suggests that the event could spark a double-digit surge in Nvidia shares.
Citi has a “Buy” rating on Nvidia and a price target of $175 per share, implying a 27% upside from current levels.
4. Managing High Expectations and Strong Demand
While Wall Street remains optimistic, there are concerns about the high expectations surrounding Nvidia’s performance. Bank of America analysts warn that demand for Blackwell could outstrip Nvidia’s production capacity for several quarters, which could lead to near-term stock volatility.
Additionally, Nvidia’s Hopper GPU is also expected to maintain strong demand, but analysts caution that lofty expectations might limit surprises during earnings reports. Investors have shown some disappointment in recent quarters despite Nvidia consistently beating earnings estimates, with stock prices occasionally dipping following post-earnings results.
Despite these potential risks, Bank of America maintains a “Buy” rating on Nvidia, setting a price target of $190 per share, which suggests another 39% upside.
Conclusion: Nvidia’s Growth Potential in 2025
As Nvidia enters 2025, it remains at the heart of the AI revolution. With strong chip demand, the upcoming Blackwell chip launch, and continued innovation, analysts are bullish on Nvidia’s prospects. However, the company must navigate high expectations and potential production constraints. Investors are watching closely for new developments, especially as Nvidia prepares to take center stage at CES in January.
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