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Industry experts are predicting that Nvidia stock is set to rise in the next few weeks.
If you like to take a punt on the stock market, Nvidia could be one to watch. After taking a hammering at the start of 2025 due to the emergence of China's DeepSeek AI, Nvidia lost nearly $600 billion and its CEO lost $20 billion. The tech giant has been slowly clawing its money back as stocks recover, but according to one expert, it could be about to boom.
Bank of America has named Nvidia alongside other companies as having 'compelling' stock options.
CNBC locks in February 26 as a key date, noting that an earnings call could be a deciding factor. Discussing the potential, Block Analyst Jason Kupferberg explained: "Expect Q4 eps call to reassure on CY25 outlook. Reiterate Buy, top pick ahead of NVDA’s FQ4′25 (Jan) earnings call scheduled for 26-Feb. We expect modest beat/inline sales guidance and lower GM in FQ1 (Apr) given Blackwell product transition/China restrictions.”
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According to Bank of America analyst Vivek Arya, the market is 'underestimating' the impact of Nvidia's latest AI chips, with stock prices also climbing from $165 to $190. It's a potential upside of nearly 39% from where it is now.
Despite the earlier fumble, Nvidia has tripled its value in the past year. Analysts fully expect it to generate more than $200 billion in free cash flow over the next couple of years, hoping to then invest in research and development.
The earnings reports is thought to be crucial, with estimations that revenue will pass $30 billion this quarter.
Forbes has also suggested it's a great time to buy Nvidia stock. It currently holds 80% of the GPU segment for AI workloads and is in more demand than ever as everyone dashes for its chips.
With major companies ranging from Microsoft to Meta investing more than ever in AI, Nvidia looks set to soar.
As Nvidia is poised to quintuple its earnings per share by 2027, it could be a lucrative long-term growth stock.
Our full-stack inference platform boosts performance and cost savings for industries like retail, telco, and more, also offering up to 15x better energy efficiency on the NVIDIA Hopper Platform for #generativeAI. ⚡
— NVIDIA AI (@NVIDIAAI) January 23, 2025
Read how ⏩ https://t.co/qen7DkQDck pic.twitter.com/PN2RvZNrfi
Forbes referred to it as a 'standout' performer of the stock market, with stock rocketing by nearly 1900% in the past five years.
Still, like the DeepSeek drama suggests, there are questions about the need for Nvidia’s high-performance and expensive chips when China is doing it for just a fraction of the cost. In general, there are concerns about America's place in the ever-growing AI market.
Going in Nvidia's favor, DeepSeek is an AI startup while it remains an AI leader. There's a 'deep and integrated' AI system that uses the CUDA platform. CUDA is described as the gold standard for GPU acceleration in AI development, with competitors facing a huge task if they're going to tempt companies away from Nvidia.
If you're looking to boost your stock options, then maybe Nvidia is one that deserves looking at a little more closely.
