Shares of chipmaking giant Nvidia have once again climbed to record highs. On June 25, the stock price surged to $154.31 per share, marking an astonishing rally that lifted the company’s market capitalization to $3.77 trillion. This new milestone allowed the chipmaker to reclaim its title as the world’s most valuable publicly traded company.
According to analysts, Nvidia’s stock rally is only gaining momentum. What is more, experts predict that the company could soar to a staggering $6 trillion in market value.
Following the June 25 surge, Nvidia shares extended their gains by another 1% late last week, reaching $155 each. This price spike marks an impressive return to the top of the leaderboard. Against this backdrop, Loop Capital analyst Ananda Baruah raised his price target on Nvidia shares to $250. This reflects a potential increase of 127% and implies a market capitalization of about $6 trillion, the highest forecast on Wall Street. Baruah is confident that with AI infrastructure spending already at such elevated levels, even larger investments from hyperscale players are likely on the horizon.
In this environment, Nvidia anticipates growing demand for so-called AI factories, integrated data centers built to train advanced models. Loop Capital's projections suggest Nvidia has "line of sight" to tens of gigawatts of demand in the next two to three years.
New AI models require hundreds of times more resources than traditional language models. This reality is prompting major tech players to expand their computing capacity and invest in Nvidia’s server solutions.
Baruah forecasts that Nvidia’s data center revenue will more than double, growing from $115 billion in 2025 to $367 billion in 2028. Thanks to its dominance in critical technologies, Nvidia is well-positioned to increase its margins. “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,” the Loop Capital analyst concluded.
