Nvidia (NASDAQ: NVDA) has dominated the 2024 stock market, driven by its artificial intelligence (AI) chips leadership, with investors eyeing the elusive $150 mark.
At the close of the last trading session, NVDA stock was valued at $135.92, ending Friday up over 3%. Nvidia is up 182% year-to-date.
Based on this valuation, claiming the $150 spot remains in sight, as the stock needs to rally by a modest 11%.
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Nvidia stock’s main fundamentals to $150
When looking at the Nvidia stock’s $150 potential, the firm’s strong fundamentals, driven by its AI dominance, position the equity to reach the milestone in 2025 potentially. Its AI chips are industry leaders, fueling record revenue and growth.
For instance, in Q3 FY2025, Nvidia’s revenue surged 94% YoY to $35.1 billion, surpassing FY2023 totals. The data center segment grew 112% to $30.8 billion, fueled by generative AI and accelerated computing.
For the twelve months ending October 31, 2024, Nvidia’s revenue hit $113.27 billion, up 152%. Now, projections for Q1 2025 average $38.03 billion, rising to $42.05 billion in Q2. Full-year 2025 revenue is forecast at $129.13 billion, with 2026 estimates reaching $195.41 billion.
The data center business, now Nvidia’s largest revenue driver, has surpassed gaming since early FY2023, powered by AI semiconductors like the H100 and H200.
Notably, with the Hopper line of products showing strong demand, the company anticipates that next-generation Blackwell chips will drive more cash flow.
Although the chips faced initial delays and overheating issues, recent reports indicate that production is proceeding smoothly, with expectations of significant growth after Q1 2025. To this end, Blackwell is expected to scale rapidly in Q4, with analysts projecting 150,000 to 200,000 units, tripling to 550,000 in Q1 FY26.
Indeed, the chips are of interest because they have demonstrated efficient management of AI workloads, enabling faster processing. This has led analysts to estimate that Blackwell’s revenue will likely account for between $5 billion and $6 billion in the coming quarters.
NVDA stock technical outlook
From a technical perspective, Nvidia’s stock setup shows that the equity is building potential for further growth in the long term amid near-term volatility.
For instance, stock trading expert on X Mike Investing has pointed out that NVDA might rally towards the end of the year, a move likely to spill into 2025.
In this case, the X analyst noted that the stock could reach over $158 by January 15, 2025. The analysis is based on a bullish pattern observed on the daily chart, which indicates an upward trend towards the end of the year and into January. Institutional investments in the stock further back this optimism.
On the other hand, analysis by charting platform TrendSpider shared on December 22 indicated that NVDA’s share price could rally after a failed breakout attempt, trading within the bullish head-and-shoulder pattern. Notably, the stock hit resistance around $140 after an attempted breakout, which led to a sharp reversal.
Support was found near the $130 level, coinciding with a prior consolidation area, an anchor for the bullish move.
The Head (H) of the pattern was around $135, with the Left Shoulder (LS) and Right Shoulder (RS) forming at $130 and $140, respectively. As noted by market analysts, this pattern’s failure to continue downwards points to a possible bullish reversal.
Wall Street’s take on Nvidia stock $150 potential
Meanwhile, Wall Street analysts have also shared a mixed outlook regarding the technology giant’s equity, with a section stressing that the $150 target is within reach. For instance, as reported by Finbold, Citi’s Atif Malik reaffirmed a ‘Buy’ rating with a $175 target, citing GPU dominance to continue in the coming quarters.
The same bullish note was also shared by William Stein, CFA, senior technology analyst at Truist Securities, who reiterated a ‘Buy’ rating, raising the price target from $169 to $204, noting that Nvidia is a ‘home-run investment over the last two years owing to AI demand.’
Cody Acree of Benchmark Capital reiterated a ‘Buy’ rating and increased the price forecast from $170 to $190, singling out the company’s data center revenue.
Nvidia stock headwinds
On the flipside, Nvidia is facing several headwinds that have the potential to derail the equity’s push toward the $150 mark. For instance, Blue Chip’s chief technical strategist, Larry Tentarelli, warned that Nvidia’s stock growth might have peaked after surpassing the $3 trillion market cap.
In a Finbold report, the analyst stated that the stock might witness minimal growth and lose ground to other emerging AI players but maintained that the company’s dominance in the sector will likely continue.
Similarly, given Nvidia’s market status, the company is susceptible to regulatory and geopolitical headwinds. In this case, the stock lost $140 in support in the wake of antitrust investigations by Chinese authorities, the outcome of which could dampen investor confidence. Indeed, equity has been caught up in the AI arms race between the United States and China.
In summary, Nvidia’s growth in AI and data centers positions it for a $150 target in 2025. While regulatory concerns, especially from China, pose risks, its market dominance makes this goal achievable if it manages these challenges.
Featured image via Shutterstock
