The stock of chip giant Nvidia (NASDAQ:NVDA) hit $1.94 trillion in market cap on Thursday, February 22, eclipsing Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL). The company’s stock closed 16.4% higher, adding a record $277 billion to its market cap in a single day.
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The uptrend in NVDA stock is driven by strong demand for its chips that power artificial intelligence (AI) computing. Thanks to this solid demand, Nvidia reported revenue of $22.1 billion in Q4, up 265% year-over-year. Further, its adjusted earnings were $5.16 per share, up 486% year-over-year. As for Fiscal 2024, its top line was up 126%, while its adjusted EPS jumped 288%.
Looking ahead, the demand for accelerated computing and generative AI is surging across companies and industries. This offers a solid foundation for NVDA’s future growth.
What Is the Future of Nvidia Stock?
Wall Street analysts are optimistic about the future of Nvidia stock. Argus Research analyst Jim Kelleher reiterated a Buy on NVDA stock on February 22. The analyst raised the price target to $850 from $600 and expects the momentum in its business to be sustained in Fiscal 2025.
Kelleher believes that NVDA should benefit from the acceleration in other end-markets like gaming, automotive, and professional visualization, alongside data center and AI.
Overall, Nvidia stock has a Strong Buy consensus rating based on 38 Buys and two Holds. It has gained about 59% year-to-date and is up approximately 232% in one year. Despite this significant growth in value, analysts’ average price target of $852.48 implies 8.54% upside potential from current levels.
