NVIDIA stock is on the move again, gaining significant momentum following a slew of positive news. But what's really driving this rally, and is it already too late to join? In this post, we'll look at the factors driving recent price action and whether investors still have room for growth.
Top Takeaways
- By providing NVIDIA to Saudi Arabia's emerging AI infrastructure projects, the country's prospects will improve by billions.
- An improving business outlook is now driving a strong 25% to 50% upside for this stock, according to analyst trends.
- A move to new heights might occur prior to the Q1 report, which is anticipated to include guidance that has been greatly improved and outperformed.
The stock price of NVIDIA (NASDAQ: NVDA) is surging and has the potential to reach extremely high levels. Reducing trade tensions with China, lowering semiconductor restrictions on Arab countries, and improving economic conditions all suggest a better outlook for sales and market sentiment, though this has not been confirmed. "This cheap stock could increase its share price by another 25% by summer and keep rising as the year goes on, having risen 50% from its April low to its mid-May highs."
According to recent reports, NVIDIA will supply hundreds of thousands of its most cutting-edge semiconductors to Humain in Saudi Arabia. Nearly two gigawatts of data center capacity will result from the five-year agreement by 2030.
The first will connect 18,000 Grace Blackwell GPUs to a supercomputer for the people and companies of Saudi Arabia. The Public Investment Fund (PIF) of Saudi Arabia is the owner of Humain, which was introduced in advance of the announcement.
NVIDIA's Upcoming Guidance Is a Catalyst for Higher Share Prices
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| Graph showing NVIDIA stock price surge with financial analysis indicators |
When NVIDIA reports at the end of this month, it is expected to release a number of market catalysts. These include the possibility of improved guidance and outperformance, which were anticipated to be strong prior to the Humain announcement and are now heightened by it. The most recent funding announcement from Perplexity, an AI start-up supported by NVIDIA, indicates that AI spending is still strong, which is one reason to anticipate strength. According to reports, its value has increased by 55% in less than six months to $14 billion.
It has a major effect on NVIDIA's outlook. It could cost up to $3 million per rack, and thousands of racks are required just for the initial order, assuming that Grace Blackwell GPUs cost about $65,000 on average. In F2025 and every year after that until 2030, this adds up to billions of dollars in revenue, assuming it can keep up with the rising demand.
NVIDIA's trends are bullish, according to analysts. Following the Saudi news, a headwind created by a few price target reductions in April and early May vanished. Analysts are likely to boost sentiment by raising estimates for revenue, earnings, and stock prices, which will propel this market into a recovery that will reach the high-end range of targets.
That is enough for both a strong 50% increase from May trading levels and new all-time highs.
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| Chart showing NVIDIA stock’s projected 50% increase from May levels and expected new all-time highs |
As of right now, MarketBeat reports that the consensus predicts another strong double-digit increase, albeit one that will slow from last year's 262% and last quarter's 77% to roughly 65%. The earnings and cash flow, which are anticipated to be impacted by China's export restrictions but are currently offset by Saudi Arabia, will be additional crucial information.
The nature of charges—which are anticipated to be primarily non-cash—and the health of the balance sheet will be the main points of discussion. A substantial cash build, a net cash position, low leverage, and a quickly improving outlook for higher capital returns were among the specifics at the end of F2024.
Institutions Purchase NVIDIA at Reduced Costs
Institutions' purchases of NVIDIA stock are indicative of their activity; they have done so on balance in Q4 2024, Q1 2025, and Q2 so far. The end effect is a strong foundation for market support and an increase in total holdings to roughly 65% of the stock.
Their buying is reflected in the technical action, which also shows that the price correction bottomed at important targets and is probably going to keep rising before the release. The 30-day EMA, which is dominated by bullish day and short-term traders, was above the price action due to the Saudi news. If it is not surpassed by the late May reporting date, the critical resistance point, which is close to $140, will probably be tested.
Is Now the Right Time to Invest $1,000 in NVIDIA?
Here's something you should know before thinking about NVIDIA. Every day, MarketBeat tracks the top-rated and most successful research analysts on Wall Street and the stocks they suggest to their customers.
NVIDIA was not included in MarketBeat's list of the top five stocks that analysts are subtly urging their clients to purchase before the market as a whole catches on.
Even though analysts currently rate NVIDIA as a Moderate Buy, they think these five stocks are better investments.
