Investor Concerns: Recent deals by OpenAI and other AI hyperscalers have raised fears of a potential stock market bubble, reminiscent of the dot-com crash, as investments are made without substantial consumer demand backing them.
Differentiating Factors: Unlike the dot-com era, some tech companies like Alphabet and Amazon may remain stable even if AI investments slow down, while others, like Nvidia, could face significant impacts due to their reliance on AI hardware demand.
Long-Term Value of AI: There is optimism that the ongoing AI arms race could yield real economic benefits over time, similar to the internet's eventual growth post-dot-com crash, despite current frothy valuations.
Investment Strategy: Investors are advised to manage their exposure to AI stocks carefully and not to panic based on market fears, as there are still opportunities for growth in AI-related sectors.
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 255.63 USD with a low forecast of 185.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
40 Analyst Rating
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 255.63 USD with a low forecast of 185.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
38 Buy
1 Hold
1 Sell
Strong Buy
Current: 187.540
Low
185.00
Averages
255.63
High
352.00
Current: 187.540
Low
185.00
Averages
255.63
High
352.00
Stifel
Buy
maintain
$250
2025-12-29
New
Reason
Stifel
Price Target
$250
2025-12-29
New
maintain
Buy
Reason
Stifel keeps a Buy rating on Nvidia with a $250 price target after Groq announced that it has entered into a non-exclusive licensing agreement with Nvidia for its inference technology. While Nvidia did not publicly comment, various reports have cited a $20B strategic transaction value for the licensing agreement and talent acquisition, the analyst tells investors in a research note. Stifel believes Groq's second generation language processing unit will be based on a Samsung 4nm process, which could ramp in conjunction with Nvidia's Vera Rubin rack systems. Integrating the system with Rubin CPX could further stretch Nvidia's artificial intelligence infrastructure leadership as inference workloads continue to evolve, contends the firm.
Citi
Atif Malik
Buy
maintain
$270
2025-12-29
New
Reason
Citi
Atif Malik
Price Target
$270
2025-12-29
New
maintain
Buy
Reason
Citi analyst Atif Malik views Nvidia's licensing deal with Groq as a "clear positive." The company is addressing competition from other inference architectures with a licensing deal that is more adequate than a full acquisition, the analyst tells investors in a research note. Citi believes Nvidia has worked around regulatory scrutiny given that Groq will still run as an independent company. It keeps a Buy rating on Nvidia with a $270 price target.
Truist
Buy
maintain
$275
2025-12-29
New
Reason
Truist
Price Target
$275
2025-12-29
New
maintain
Buy
Reason
Truist believes Nvidia's licensing agreement with Groq is intended to "fortify" its competitive positioning in inference versus tensor processing units. While the reported $20B cost is significant, it is small relative to Nvidia's cash position and cash flow generation, the analyst tells investors in a research note. Truist says Nvidia's development of Groq's technology could make its capabilities more appealing to high volume inference customers. The firm keeps a Buy rating on the shares with a $275 price target.
UBS
Buy
maintain
$235
2025-12-29
New
Reason
UBS
Price Target
$235
2025-12-29
New
maintain
Buy
Reason
UBS says Nvidia is licensing Groq's high speed inference technology at a "substantial" price tag of $20B. The licensing agreement could bolster Nvidia's ability to service high speed inference applications, the analyst tells investors in a research note. UBS remains bullish on Nvidia shares heading into 2026. The firm expects appreciation from here to be driven almost by higher earnings estimates. It has a Buy rating on Nvidia with a $235 price target.
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
