Latest news with #LoopCapital
Yahoo
an hour ago
- Business
- Yahoo
Can Nvidia Stock Hit $250 in 2025?
Artificial intelligence (AI) darling Nvidia (NVDA) is once again making waves, this time by reclaiming its title as the world's most valuable company. The chipmaker, which has been at the heart of the AI boom and a go-to name for Big Tech's most advanced computing needs, saw NVDA stock hit a fresh record high on June 25. The surge came after Loop Capital analyst Ananda Baruah described Nvidia as poised to ride a 'Golden Wave' of AI. NVDA stock closed up by more than 4% in a single day, pushing its market capitalization just ahead of Microsoft (MSFT). Apart from bullish analyst commentary, what really caught investors' attention was Loop's aggressive price target hike from $175 to $250. With enthusiasm running high, can Nvidia continue to soar and actually hit that lofty target in 2025? Dear Nvidia Stock Fans, Watch This Event Today Closely A $2 Billion Reason to Sell Super Micro Computer Stock Now 3 ETFs Offering Juicy Dividend Yields of 15% or Higher Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Nvidia needs no introduction. It's the name behind the AI boom and the muscle behind everything from gaming and data centers to self-driving cars. With its cutting-edge chips powering the next wave of tech innovation, the company has firmly cemented its place at the center of the digital revolution. While it has faced some turbulence in 2025 — ranging from U.S.-China trade tensions to concerns over slowing AI spend and rising competition — Nvidia still remains a key player in the AI race. Although Loop Capital's Street-high price target has certainly fueled excitement, there's a broader wave of optimism driving the rally. Investors appear increasingly confident that China's export restrictions won't derail Nvidia's leadership in the AI space, especially as global demand for advanced computing continues to soar. Adding to the bullish tone, CEO Jensen Huang struck an ambitious note at Nvidia's annual shareholder meeting on Wednesday, describing AI and robotics as a 'multitrillion-dollar growth opportunity.' The comments come at a time when governments around the world are ramping up investments in sovereign AI capabilities to tackle critical national priorities. With momentum building across both private and public sectors, Nvidia's long-term growth story remains as compelling as ever. Now commanding a staggering $3.76 trillion market cap, Nvidia has stormed back into the spotlight, fueled by bullish analyst calls, a bold growth outlook from leadership, and global demand for AI solutions. Nvidia surged to a new 52-week high of $156.72 on June 26. With a 15% gain in 2025 so far, the stock is easily outpacing the broader S&P 500 Index's ($SPX) 4.4% return year-to-date (YTD). The chipmaker's fiscal 2026 first-quarter earnings, posted on May 28, didn't disappoint, crushing expectations on both revenue and profit. Nvidia reported a massive 69% year-over-year (YOY) increase in revenue, reaching $44.1 billion and surpassing the $43.3 billion estimate. As usual, it was the data center segment that stole the show, continuing to drive Nvidia's role at the heart of the AI revolution. Nvidia's data center business demonstrated a stunning 73% YOY jump to $39.1 billion, making up a commanding 88% of total revenue. The gaming segment also impressed, climbing 42% to $3.8 billion on strong demand for high-performance chips. Even the automotive and robotics unit got in on the action, racing ahead by 72% YOY to $567 million. Nvidia ran into a regulatory hurdle in the quarter when the U.S. slapped fresh restrictions on its previously approved H20 chip for China. The fallout wasn't small. The company took a $4.5 billion hit for excess inventory and missed out on an estimated $2.5 billion in sales. That dragged its adjusted gross margin down to 61%, although without the impact that would have come in at a much stronger 71.3%. On the bottom line, Nvidia delivered adjusted earnings of $0.81 per share, up 33% from last year and beating expectations by 8%. Without the H20 chip charge, earnings would have jumped to $0.96 per share. Still, investors seemed pleased, sending NVDA stock up 3.3% on May 29. Looking ahead, Nvidia is guiding for $45 billion in revenue for Q2 of fiscal 2026, give or take 2%. That figure already bakes in an estimated $8 billion hit from the latest export restrictions on its H20 chips. On the profitability side, Nvidia expects GAAP and non-GAAP gross margins to be 71.8% and 72%, with a 50-basis-point cushion in either direction. Despite recent headwinds, the company isn't backing down. It's still setting its sights on gross margins climbing into the mid-70% range by year-end. Fueling Nvidia's latest surge, Loop Capital cranked up its price target from $175 to a Street-high $250, reaffirming its 'Buy' rating. Analyst Ananda Baruah didn't hold back in his bullish outlook, remarking that we're entering the next 'Golden Wave' of generative AI adoption, with Nvidia positioned right at the forefront. According to Baruah, demand for Nvidia's high-end AI chips is ramping up even faster than expected, setting the stage for another powerful leg of growth. Overall, Nvidia continues to enjoy unwavering support on Wall Street, where the consensus remains a resounding 'Strong Buy.' Of the 44 analysts offering recommendations, 37 give NVDA stock a 'Strong Buy" rating, three suggest a 'Moderate Buy,' three offer a 'Hold,' and one analyst advocates for a 'Strong Sell" rating. The average analyst price target of $174.84 indicates 13% potential upside from current price levels. However, Loop Capital's street-high price target of $250 suggests the stock can rally as much as 61%. With solid fundamentals, soaring AI demand, and strong backing from Wall Street, Nvidia's climb to $250 in 2025 may be bold, but it is looking increasingly achievable. On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 hours ago
- Business
- Yahoo
Loop Capital Says NVIDIA (NVDA) Is Entering a ‘Golden Wave' of Gen AI
NVIDIA Corporation (NASDAQ:) is one of the . On June 25, Nvidia stock hit a record high to reclaim the title of being the 'world's most valuable company'. On that note, Loop Capital has deemed that the chipmaker is set to ride a 'Golden Wave' of artificial intelligence. The firm lifted its price target for the stock to $250 from $175, while maintaining its 'Buy' rating. 'Our work suggests we are entering the next 'Golden Wave' of Gen AI adoption and NVDA is at the front-end of another material leg of stronger than anticipated demand.' -Loop Capital analyst Ananda Baruah. In a research note, the analyst told investors how their work on the supply chain suggests that hyperscale and AI factory Gen AI and AI accelerator compute spending 'alone' could accelerate to about $2T by 2028 using current compute economics. While Loop understands that this implies a $6T market cap for Nvidia, it contends that 'the math just works' as the market enters the next 'golden wave' of Gen AI. While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks in the Spotlight and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
2 days ago
- Business
- Mint
Nvidia's market cap crown: What it means for AI
After a sharp drop amid concerns over how profitable artificial intelligence (AI) initiatives would turn out, Nvidia shares are on a rebound. They hit an all-time high this week, and with its market cap overtaking Microsoft's, this AI-focused chip-maker reclaimed its crown as the world's most valuable company. Since its recent low in April, when US President Donald Trump announced his Liberation Day tariffs, Nvidia's stock has risen more than 60%. That's a huge swing up. Analysts are now less pessimistic about the commercial prospects of AI and Nvidia's graphics processing units (GPUs) have been in demand for all kinds of AI ventures. Loop Capital, in a research note, said it expects the next 'Golden Wave" of GenAI adoption to start, with Nvidia at the forefront of meeting its needs. The company has also been broadening its focus to robotics and cloud computing. While the field of AI seems fairly well contested, with ambitious Chinese startups having joined the fray, the market for enablers like specialized GPUs remains in the grip of a single player, Nvidia. Competition ought to challenge this concentration of power before it turns AI services costlier than they should be.
Yahoo
2 days ago
- Business
- Yahoo
How Nvidia could end up worth $6 trillion after reclaiming its spot as the world's most valuable company
Nvidia is trading at record highs, adding gains to Wednesday's all-time closing high. But one firm sees the stock soaring much higher. Here's how analysts at Loop Capital see Nvidia on the path to a $6 trillion valuation. Nvidia shares hit a record high on Wednesday, closing at $154.31 and lifting the chipmaker's market value to $3.77 trillion. The move allowed the AI titan to reclaim the title of the world's most valuable company — but one firm thinks the rally isn't even close to being over. The stock extended its record high on Thursday, rising about 1% to $155. The latest jump to record highs marks an impressive comeback for Nvidia after struggling against headwinds like the reveal of China's DeepSeek AI and the impact of tariffs earlier in the year. But the party is just getting started, according to one analyst. Ananda Baruah of Loop Capital raised his Nvidia price target to $250, a bold move even among AI bulls. It's the highest price target on the Street, implying an upside of 127% and a market cap of $6 trillion. A $6 trillion market cap might sound crazy, but "the math just works," according to Baruah. If you think AI infrastructure spending is robust now, brace yourself for even bigger capex from the AI hypercalers. Loop Capital sees a coming surge in data center spending as companies like Amazon and Microsoft continue to increase their investments in the technology. Loop Capital estimates that spending on non-CPU compute like GPUs and AI accelerators could soar as hyperscalers boost non-CPU compute from around 15% of their infrastructure to 50%-60% by 2028. They said their work "suggests that Hyperscale & AI Factory (Sovereign, Neocloud & Enterprise) Gen AI & AI Accelerator compute spending ALONE could increase to~$2.0T by 2028 using current compute economics." Nvidia also anticipates rising demand for AI factories, which are vertically integrated data centers built to train AI models. Loop Capital's projections suggest Nvidia has "line of sight" to tens of gigawatts of demand in the next two to three years. Nvidia CEO Jensen Huang has stated that every gigawatt of demand translates into around $40 to $50 billion of Nvidia revenue, implying $450 to $900 billion of sales in the pipeline. Additionally, the newest AI reasoning models are much more compute-intensive—and expensive—than anticipated, taking up to 150x more compute than traditional LLMs. That means Big Tech companies are growing their tokens at a rapid rate and spending more money on Nvidia AI server systems. Baruah sees Nvidia's data center revenue more than doubling in the next few years, from $115 billion in fiscal year 2025 to $367 billion in fiscal year 2028. He believes Nvidia is well-positioned to capture a significant chunk of that demand, as the company "remains essentially a monopoly for critical tech," giving it pricing power and room for margin expansion. "We're entering the next 'Golden Wave' of Gen AI adoption," Baruah wrote. "Nvidia is at the front-end of another material leg of stronger-than-anticipated demand." Read the original article on Business Insider
Fast Company
2 days ago
- Business
- Fast Company
Nvidia stock price hits fresh record high as analyst sees ‘golden wave' of Gen AI adoption
Shares of Nvidia Corp (Nasdaq: NVDA) reached a new record high on Thursday in premarket trading. As of the time of writing, the stock had peaked at $156.99 before slightly sliding to $156.68. The uptick follows Wednesday's all-time high closing price of $154.31, which rose to $154.59 in after-hours trading. DeepSeek and tariffs worried investors earlier this year Nvidia has been a de facto representative of AI investment in the market. It reached a high of $153.13 in early January, but its shares soon tumbled alongside China's success with AI company DeepSeek and uncertainty around tariffs. DeepSeek used Nvidia chips to build its AI systems despite the United States banning their sale to China. The stock hit a low of $86.62 on April 7, just five days after President Trump's 'Liberation Day,' on which he announced a series of tariffs worldwide. But now, at nearly double that price, it has recovered its losses—and signaled a renewed investment in AI. However, it comes as the dollar hits a three-year low after reports that Trump will move up his selection of a new Federal Reserve chair, the Wall Street Journal reports. What's fueling Nvidia's recent rally? The chipmaker's current ascension was fueled in part by Loop Capital's decision yesterday to raise its price target from $175 to $250. 'Our work suggests we are entering the next 'Golden Wave' of Gen AI adoption, and NVDA is at the front-end of another material leg of stronger than anticipated demand,' Loop Capital analyst Ananda Baruah stated in a client note, according to Reuters. Helped along by Nvidia's 4% rise on Wednesday, the Nasdaq composite also neared its record high with a 0.3% increase.
