Should You Buy Nvidia Stock After It Notched 30% Gains in 2025? Wall Street Is Providing a Nearly Unanimous Answer.

Core Viewpoint - Wall Street remains optimistic about Nvidia's stock, with a significant rise in its value and strong growth projections for the company in the AI sector [1][4][12]. Stock Performance - Nvidia's stock has increased approximately 30% in 2025, down from a peak of 54% a few weeks prior [1]. - The current stock price is around $176.96, with a market cap of $4,301 billion [5][6]. Analyst Sentiment - Analysts have set an average price target of nearly $250 for Nvidia, with 10 out of 63 analysts rating it as a strong buy and 48 as a buy [6][7]. - Only five analysts suggest holding or selling the stock, indicating a generally positive outlook from Wall Street [7]. Financial Performance - In Q3 FY 2026, Nvidia reported a remarkable 62% year-over-year revenue growth, reaching $57 billion, with the data center division growing by 66% to $51.2 billion [8][9]. - Nvidia anticipates $500 billion in sales from its Blackwell and Rubin chip architectures from 2025 to 2026, which are crucial for AI workloads [10]. Future Projections - Analysts expect Nvidia to generate an average revenue of $313 billion in FY 2027, suggesting that current market valuations may not fully reflect its growth potential [12]. - The stock trades at 24 times next year's earnings, which is lower than competitors like Microsoft and Apple [14]. Market Position - Nvidia is positioned as a leader in the AI revolution, with its CEO highlighting strong demand and sold-out cloud computing units [9][15]. - The risk of underbuilding in the AI infrastructure market is perceived to be greater than overbuilding, reinforcing Nvidia's critical role in the tech industry [15].