Nvidia(US:NVDA) 247Wallst·2025-12-16 12:05Core Viewpoint - NVIDIA Corp. has experienced significant stock fluctuations, with a recent decline of 4.95% after a previous gain, and a notable correction of 14.85% since its all-time high on October 29, despite being up over 27% year-to-date [1][2]. Financial Performance - In Q3, NVIDIA reported record revenue of $57.0 billion and diluted EPS of $1.30, surpassing analyst expectations, with data center revenue reaching $51.2 billion, a 66% year-over-year increase [2]. - Over the last decade, NVIDIA's revenue has grown by more than 553%, while net income has increased by over 1,323% [7][8]. Market Capitalization Milestones - NVIDIA became the first publicly traded company to exceed a market cap of $5 trillion in late October, following its earlier achievement of surpassing a $4 trillion market cap in July [3]. Investment Plans - The company announced plans to invest up to $100 billion in OpenAI, prompting analysts to raise their price targets for NVIDIA, with Evercore increasing it to $225 and Barclays to $240 [4]. Stock Performance and Projections - Analysts predict significant upside potential for NVIDIA, with a consensus median one-year price target of $258.97, indicating a potential upside of 46.90% [12]. - Forecasts for NVIDIA's revenue and net income through 2030 show continued growth, with projected revenue of $265.522 billion and net income of $175.412 billion by 2030 [13]. Key Drivers of Growth 1. Dominance in GPU Industry: NVIDIA maintains a stronghold in the GPU market, with a market cap of $3.34 trillion, significantly larger than competitors like AMD and TSMC [9]. 2. Demand from Major Tech Clients: Major tech companies, including Alphabet, Amazon, Meta, and Microsoft, account for 40% of NVIDIA's revenue, driving demand for its products [10]. 3. Expanding AI Market: The AI market, valued at $196.63 billion in 2023, is expected to grow at a CAGR of 36.6% from 2024 to 2030, benefiting NVIDIA's growth [11].