Shares of chip giant Nvidia (NASDAQ:NVDA) keep going up, with its stock gaining nearly 86% year-to-date. Notably, NVDA stock closed 7.16% higher on March 12 and is fast nearing the $1,200 mark, the Street high price target.
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The upward trajectory in Nvidia stock is led by the widespread application of artificial intelligence (AI) across industries and its leadership in graphic processing units (GPUs) powering AI computing. This is evident through the massive growth in its Data Center revenue in Fiscal Year 2024. Notably, Nvidia’s Data Center revenue reached $47.5 billion in FY2024, which more than tripled from the prior year.
Nvidia Stock Could Surpass Apple’s Market Cap
Thanks to the ongoing rally, Nvidia’s market cap has exceeded that of Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL). Further, it is on the verge of surpassing Apple (NASDAQ:AAPL). Based on the March 12 closing price, NVDA’s market cap stood at $2.3 trillion, while AAPL stock sports a market cap of about $2.7 trillion.
As demand for chips continues to skyrocket, Nvidia expects sequential growth in its Data Center revenue in Q1 of FY2025. The company’s Hopper GPU computing platform and InfiniBand networking are seen as the benchmarks for the highest-performing accelerated computing and AI infrastructure. Moreover, the supply of Hopper architecture products is improving, which will boost revenue.
Further, the company is ramping up the H200 GPU, which is in high demand due to its nearly doubled inference performance compared to the H100. These developments are seen as positive catalysts for NVDA stock.
Is Nvidia Still a Good Buy?
Nvidia stock has risen more than 300% in one year. Despite the significant appreciation in its value, analysts see NVDA as a good buy. 39 out of 41 analysts recommend buying its stock, and two analysts maintain a Hold. Overall, it sports a Strong Buy consensus rating.
Analysts’ average price target on NVDA stock is $905.74, implying 1.46% downside potential from current levels.
However, given the solid demand trend, analysts’ price targets for NVDA stock could be adjusted upward.
