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Here’s why Nvidia stock is ‘best-positioned’ to capitalize on AI growth

Here’s why Nvidia stock is ‘best-positioned’ to capitalize on AI growth

NVIDIA Corporation (NASDAQ: NVDA), the renowned tech company, has emerged as a major winner in the stock market this year, with an awe-inspiring performance fueled by the relentless growth of artificial intelligence (AI) technology.

In light of the ongoing AI frenzy, Stifel analysts led by Ruben Roy hiked the price target for Nvidia’s stock from $225 to $300 on Monday, May 22. The experts believe the chipmaker could be the largest beneficiary of the AI boom going forward. 

“NVDA remains the best-positioned component/ systems company to benefit from the AI investment cycle in the medium term, in our view.”

– said Ruben Roy, an analyst at Stifel.

The broker also reiterated the ‘hold’ rating on NVDA. Moreover, Stifel also raised its outlook for Nvidia’s financial results, estimating the company’s revenue to grow to $37.8 billion for the full year 2025 and earnings per share (EPS) to rise to $6.18. 

Stock price analysis

Stifel’s new price objective is 3.7% lower than NVDA’s Monday closing price of $311.76. At the time of writing, the company’s shares fell by 0.4% in premarket trading to $310.51. 

The Santa Clara, California-based tech company has delivered an impressive performance in the stock market this year, surging almost 110% year-to-date, driven by investors’ growing appetite for the nascent AI space.

NVDA YTD price chart. Source: Finbold

In the past month alone, NVDA gained more than 15.6%. 

1-year price forecast

Over the past three months, 47 stock market analysts offered their views on NVDA, giving the stock a consensus rating of ‘buy.’ This is based on 32 analysts rating the stock as a ‘strong buy,’ 3 suggesting a ‘buy,’ and 12 advising a ‘hold.’ Notably, none of the analysts advocate selling the stock.

1-year analysts’ price forecasts for NVDA. Source: TradingView

Meanwhile, 41 analysts shared their 1-year price forecasts for Nvidia’s stock. The average price objective stands at $298.53, which is around 4.2% lower than the company’s current price level. Analysts’ high and low estimates are standing at $460 and $175, respectively. 

It’s worth mentioning that earlier this week, Finbold highlighted NVDA stock as one of the three chipmaker stocks to keep an eye on in the wake of recent China’s crackdown on Micron, marking the latest escalation in the tech dispute between Beijing and Washington. 

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