Nvidia stock (NASDAQ: NVDA) skyrocketed to a new all-time high on Friday, driven by broader momentum in the semiconductor sector and recent upgrades from several analysts.
The shares were trading at $195.62 at press time, which is around 44.86% upside from its year-ago levels.
The latest stock climb came amid heightened excitement over its next-level GPUs and AI infrastructure, which are still essential for big cloud providers and training advanced AI models.
CEO Jensen Huang recently mentioned that demand for AI computing has seen “substantial” growth over the past six months.
On top of that, Nvidia’s collaborations with OpenAI and Microsoft Azure on massive AI data-center projects really highlight how central the company has become in the AI world.
Nvidia stock: What’s behind the bullish momentum
Apart from the factors mentioned above, Nvidia stock gained considerably after receiving an upgrade from Cantor Fitzgerald.
The financial services firm boosted its price target for Nvidia stock from $240 to $300, showing strong optimism about the company’s growth as AI infrastructure demand keeps soaring.
That new target suggests the stock could climb about 55% from its recent price near $194, potentially pushing Nvidia’s market cap toward $7 trillion, up from around $4.6 trillion today.
Moreover, Nvidia has a near-monopoly in the AI infrastructure space as it is estimated to control over 90% of the high-performance GPUs used for AI training and inference.
Its latest H100 GPUs and the upcoming Blackwell platform keep it ahead technologically.
Big partnerships with cloud giants like Microsoft, Amazon, Google, and Meta, who are pouring billions into AI data centers powered by Nvidia chips, are driving huge demand.
Cantor Fitzgerald points to a multi-trillion-dollar AI infrastructure boom, and Nvidia is perfectly positioned to capture a big slice of that.
Regulatory crackdown in China
Despite the recent boom and ongoing bullish momentum in the AI space, Nvidia stock faces major threats from the regulatory crackdowns in big economies like China.
The authorities in Beijing have tightened rules on importing advanced chips, including their AI processors.
The move is aimed at cutting reliance on US tech and boosting local alternatives, according to the a Financial Times report.
China’s Cyberspace Administration even told major tech companies to pause orders and testing of Nvidia products, adding some geopolitical risk to Nvidia’s revenue from the region.
The recent crackdown in China came as several reports claimed that at least $1 billion worth of Nvidia chips were smuggled in China in the past few months.
Even so, analysts are staying positive.
Cantor Fitzgerald sees the AI market as still in its early stages, with “no bubble” in sight, while firms like Melius Research have raised Nvidia’s targets, noting it could capture up to 40% of the AI infrastructure market by 2030.
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