Nvidia Stock Pullback Yet Optimistic Outlook Persists
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- All-Time High Pullback: Nvidia's stock reached an all-time high of $207.03 on October 29, 2025, with a market cap exceeding $5 trillion, but has since declined by 11%, reducing its market cap to approximately $4.5 trillion, reflecting market concerns about its future growth.
- Market Dominance: Nvidia controls over 90% of the discrete GPU market, and its proprietary CUDA programming platform enhances customer stickiness, allowing it to maintain a leading position in the rapidly expanding AI market despite competitive pressures from AMD and Broadcom.
- Strong Growth Expectations: Analysts forecast Nvidia's revenue and EPS to grow at CAGRs of 47% and 46%, respectively, from fiscal 2025 to fiscal 2028, indicating robust long-term potential in the AI sector.
- Future Stock Price Predictions: Should Nvidia meet analysts' forecasts and maintain a forward P/E ratio of 24, its stock could rise nearly 20% over the next 12 months, potentially lifting its market cap back above $5 trillion, showcasing its ongoing growth potential.
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Analyst Views on NVDA
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 264.97 USD with a low forecast of 200.00 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.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
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.
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- Strong Growth Expectations: Analysts forecast Nvidia's revenue and EPS to grow at CAGRs of 47% and 46%, respectively, from fiscal 2025 to fiscal 2028, indicating robust long-term potential in the AI sector.
- Future Stock Price Predictions: Should Nvidia meet analysts' forecasts and maintain a forward P/E ratio of 24, its stock could rise nearly 20% over the next 12 months, potentially lifting its market cap back above $5 trillion, showcasing its ongoing growth potential.
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- Hardware Independence: Alphabet is reducing its reliance on Nvidia by developing its TPU chip in partnership with Broadcom, which is expected to provide a more competitive hardware alternative, while Anthropic's use of Google's TPUs further expands its market influence.
- Financial Advantage: Alphabet's revenue is projected to exceed $400 billion in 2025, a 15% increase, with net income reaching $132.1 billion, showcasing its profitability and financial robustness in the AI sector, providing strong support for future capital expenditures.
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- AI Fatigue Emerges: As investor optimism around artificial intelligence wanes, tech stocks have continued to decline over the past three months, with the Russell 1000 Value index up 8.4% while the tech-heavy Russell 1000 Growth index is down 3.7%, reflecting a shift in market preference towards value stocks.
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- Market Dominance: Nvidia controls over 90% of the discrete GPU market, and its proprietary CUDA programming platform enhances customer stickiness, allowing it to maintain a leading position in the rapidly expanding AI market despite competitive pressures from AMD and Broadcom.
- Strong Growth Expectations: Analysts forecast Nvidia's revenue and EPS to grow at CAGRs of 47% and 46%, respectively, from fiscal 2025 to fiscal 2028, indicating robust long-term potential in the AI sector.
- Future Stock Price Predictions: Should Nvidia meet analysts' forecasts and maintain a forward P/E ratio of 24, its stock could rise nearly 20% over the next 12 months, potentially lifting its market cap back above $5 trillion, showcasing its ongoing growth potential.
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