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Stocks of semiconductor giant Nvidia (NASDAQ:NVDA) reached a market cap of $1.94 trillion on Thursday, February 22nd, surpassing Amazon (NASDAQ:AMZN) and the alphabet (NASDAQ:Google). The company’s shares closed 16.4% higher, marking a one-day increase in market capitalization of $277 billion.
The upward trend in NVDA stock has been driven by strong demand for the company’s chips that power artificial intelligence (AI) computing. Thanks to this strong demand, Nvidia reported revenue of $22.1 billion in the fourth quarter, up 265% year over year. In addition, adjusted earnings were $5.16 per share, an increase of 486% year over year. For fiscal year 2024, sales increased by 126% and adjusted EPS increased by 288%.
Looking ahead, demand for accelerated computing and generative AI is exploding across enterprises and industries. This provides a solid foundation for NVDA’s future growth.
What does the future hold for Nvidia stock?
Wall Street analysts are optimistic about the future of Nvidia stock. Argus Research analyst Jim Kelleher reiterated his buy rating on NVDA stock on February 22nd. The analyst raised his price target to $850 from $600 and expects the business to maintain momentum in fiscal 2025.
Kelleher believes NVDA should benefit from acceleration in other end markets such as gaming, automotive, and professional visualization, along with data center and AI.
Overall, NVIDIA stock receives a consensus rating of “Strong Buy” based on 38 Buys and 2 Holds. It’s up about 59% since the beginning of the year, and about 232% in one year. Despite this significant value increase, the average analyst price target is $852.48, implying a potential upside of 8.54% from current levels.
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