Nvidia stock is steadily climbing as Wall Street analysts assess the AI chipmaker's near- and long-term prospects. On Wednesday, it hit an all-time high after getting a price-target hike.
Loop Capital Markets analyst Ananda Baruah reiterated his buy rating on Nvidia stock and upped his price target to 250 from 175.
His firm's research indicates that AI data center spending could increase to about $2 trillion by 2028. That spending total implies a $6 trillion market cap for Nvidia, he said.
On the stock market today, Nvidia stock rose 4.3% to close at 154.31. Earlier in the session, it notched a record high of 154.45. Its previous record high was 153.13, reached on Jan. 7.
With the advance, Nvidia stock regained its crown as the largest company by market capitalization. Its market cap is now $3.77 trillion. Microsoft fell to No. 2 with a valuation of $3.66 trillion.
"Our work suggests we are entering the next 'Golden Wave' of Gen AI adoption and Nvidia is at the front end of another material leg of stronger-than-anticipated demand," Baruah said in a client note Wednesday.
He added, "Nvidia remains essentially a monopoly for critical tech, and that it has pricing (and margin) power."
Nvidia Stock Breaks Out
Nvidia is benefiting from the rise of inference computing in artificial intelligence, Baruah said. Those reasoning models include emerging agentic AI applications.
On Wednesday, Nvidia stock broke out of a 25-week consolidation pattern with a buy point of 153.13, according to IBD MarketSurge charts. IBD's Leaderboard had pointed to an earlier buy zone of 145 to 152.25.
As with all trades, especially in highfliers like Nvidia, investors should keep risk management in mind. Following sound rules for when to buy and sell stocks keeps those principles intact.
Nvidia stock is on three IBD lists: Leaderboard, Sector Leaders and Tech Leaders.
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