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NVIDIA stock was trading at US$111.52 as of 5.23 PM. The share price showed the company’s strong AI dominance while facing valuation pressure, geopolitical risks, and rising competition. Explore the NVIDIA stock forecast for 2025, featuring expert insights and a detailed analysis of key financial metrics.
NVIDIA, with a market cap of US$2.72 trillion as of May 2, 2025, remains a leader in AI and data center tech. The current share price is US$111.52 with a rise of 2.54%, but it is down by 18.9% year-to-date. The stock is underperforming in the S&P 500 and the S&P Semiconductor Index. Thus, raising questions about its future growth amid external pressures.
Let’s dive deeper into the stock’s recent performance to understand if its long-term growth concerns are worth worrying about.
For fiscal year 2025, NVIDIA achieved a 114% revenue rise, reaching US$130.5 billion. Its GAAP EPS jumped 147% to US$2.94. The trailing twelve-month (TTM) EPS of the stock was at US$2.99, a 130.77% year-on-year increase.
The NVIDIA share price chart of 24 hours, as of 6.15 PM, showed a minor decline of 0.03%:
The TTM price-to-earnings (PE) multiple sits at 37.29. This expansion is fueled by strong demand for GPUs and the success of the Blackwell AI supercomputing platform, which CEO Jensen Huang says is moving "at light speed."
Most experts on Wall Street are optimistic. Out of 42 analysts covering NVIDIA, 37 have rated it a ‘Strong Buy.’
Fundstrat's Tom Lee estimates that NVIDIA may hit US$1 trillion of annual revenue within the next ten years, led by the boost in AI infrastructure spending. Morgan Stanley recently reinstated its ‘Overweight’ rating. It highlights a global shortage of inference chips and continued GPU demand amid global market worries.
The introduction of NVIDIA's Blackwell architecture and the continuous development reaffirm the long-term bullish hypothesis. The company has a history of beating earnings expectations. Thus, reinforces investor confidence in its operational strength and technological dominance.
Then, why are investors worried? Read the upcoming sections to find out.
Not everyone is a believer! Doubters list the following reasons to be cautious:
Valuation Pressure: Even with a pullback, NVIDIA's PE continues to be high relative to the rest of the market. Some would say that much of the firm's future success is already priced in.
Geopolitical Risk: US export restrictions on high-end AI chips to China are affecting revenue estimates. As more regulatory pressure builds, NVIDIA may encounter additional international barriers.
Customer Softening: Major client Super Micro Computer slashed Q3 guidance, citing delayed platform decisions. This raised concerns about diminishing demand and potential in-house chip development by large buyers.
Growing Competition: Competitors such as AMD, Intel, Huawei, and startups like DeepSeek are making progress in AI and custom chips. Hyperscalers are looking at internal solutions, which is challenging NVIDIA's leadership.
Economic Challenges: A shocking 0.3% dip in US GDP during Q1 2025 and weakening consumer expenditures have put a shadow on the valuations of tech stocks. NVDA stocks dipped 2.5% on April 30, in tandem with overall market jitters.
Analysts are split because of mixed signals. Although consensus is generally bullish, the difference between the highest estimated price target (US$220) and the current stock price indicates high volatility to come. A mean price target of US$166.10 may mean an upside of 52.5%. However, any growth slowdown or regulatory shock could turn markets around in a hurry.
NVIDIA's stock prediction represents an unusual combination of outstanding performance and increasing uncertainty. Its dominance in AI and the data center cannot be matched, but valuation issues, saturation, and regulatory risk concerns linger. For investors, NVIDIA is a high-stakes wager on the future of AI, a logo of both monumental opportunity and developing vulnerability.
