Nvidia (NASDAQ: NVDA) has once again captured Wall Street’s attention, surging past a $1 trillion market cap gain in just two months and solidifying its dominance in the AI revolution.
With demand for its cutting-edge chips soaring, analysts are raising price targets and investors are piling in—driving shares to new highs.
But with rising geopolitical tensions, insider stock sales, and sky-high expectations, the question remains: how long can this rally last?
Here’s what’s behind Nvidia’s meteoric rise and what it means for the future of tech investing.
Nvidia’s $1 Trillion Rebound: What’s Fueling the Surge?
Nvidia (NASDAQ: NVDA) has staged a remarkable comeback, adding $1 trillion in market capitalization over the past two months. This resurgence is driven by several key factors:
- AI Demand: Nvidia’s dominance in AI hardware, particularly with its Blackwell architecture and GeForce RTX 50 series GPUs, has positioned it at the forefront of the AI boom.
- Strong Financials: In Q1 FY2026, Nvidia reported revenue of $44.1 billion, a 12% increase from the previous quarter and a 69% rise year-over-year. Data center revenue alone reached $39.1 billion, up 73% from a year ago.
- Analyst Confidence: Jefferies added Nvidia to its list of highest-conviction stock picks, citing the upcoming ramp-up of its new Blackwell AI chips and projecting gross margins could rise to between 70% and 80% in 2025.
Nvidia Stock Performance: A Snapshot
As of June 3, 2025, Nvidia’s stock is trading at $141.79, reflecting a 3.19% increase from the previous close. The stock has seen a 24.1% rally in May alone, driven by strong earnings and positive analyst sentiment.
Analyst Perspectives: Bullish on Nvidia
Analysts remain optimistic about Nvidia’s prospects:
- Jefferies: Maintains a Buy rating with a $185 price target, highlighting Nvidia’s strong potential in networking solutions and a smooth transition to its next-generation Rubin platform.
- Morgan Stanley: Reiterated its Overweight rating, calling Nvidia a “unique opportunity” in the semiconductor space and maintaining it as the firm’s top pick despite broader concerns about sector headwinds.
- UBS: Identified potential revenue boosts from the Stargate data center project in Texas, which could significantly benefit Nvidia.
Potential Risks: What Investors Should Watch
While the outlook is positive, investors should be mindful of potential challenges:
- Geopolitical Tensions: U.S.-China trade tensions and tariffs could impact Nvidia’s operations and supply chains.
- Insider Selling: CEO Jensen Huang’s plan to sell $800 million in shares has raised questions, although it’s part of a pre-arranged plan to avoid insider trading concerns.
Conclusion: Is Nvidia a Buy?
Nvidia’s strong financial performance, leadership in AI technology, and positive analyst outlook make it a compelling investment.
However, investors should remain vigilant about geopolitical risks and insider trading activities. Overall, Nvidia appears well-positioned for continued growth in the AI-driven future.
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