NVIDIA Corporation (NVDA), currently trading at $120.07 per share, has been a dominant force in the semiconductor industry, particularly in graphics processing units (GPUs) and artificial intelligence (AI) applications. Recently, the stock experienced a significant decline, dropping 17% in January 2025, primarily due to concerns over emerging AI technologies that may reduce the demand for high-cost hardware.

Despite this setback, NVIDIA's fundamentals remain strong, with analysts maintaining a "Strong Buy" consensus and an average 12-month price target of $169.53, suggesting a potential upside of approximately 41%.

Looking ahead, if NVIDIA continues to innovate and maintain its leadership in AI and GPU markets, the stock could recover to $150–$180 per share by the end of 2025. However, increased competition and rapid technological advancements in AI could pose challenges, potentially limiting the stock's performance to the $100–$120 range.

How well do narratives help inform your perspective?

Disclaimer

The user M_Kabesh has a position in NasdaqGS:NVDA. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.