From Nasdaq: 2025-04-19 05:30:00

Nvidia (NASDAQ: NVDA) stock has dropped 26% in 2025, facing challenges like AI infrastructure slowdown, rising competition, and tariff war costs. Citi lowered price target to $150 due to U.S. data center slowdown. Despite this, analysts predict a 58% jump to $175. Nvidia’s future success hinges on data center GPU demand and Stargate project investments.

Data center spending may slow down due to economic uncertainty, affecting cloud providers like Amazon, Meta Platforms, Alphabet, and Microsoft (NASDAQ: MSFT). Microsoft’s data center constructions are reportedly slowing due to changes with OpenAI. OpenAI’s Stargate project plans to invest $100 billion in AI data centers, driving demand for Nvidia’s GPUs.

Nvidia could see a strong growth trajectory with Stargate project investments. Each Nvidia GPU system is priced between $30,000 to $35,000, potentially reaching $3 million for high-end systems. Cloud giants like Alphabet and Amazon are sticking to massive capital spending plans, benefiting Nvidia. The company’s stock may have the potential to hit $200 despite economic challenges.

Nvidia is expected to see solid earnings growth in fiscal 2026, with analysts forecasting a 51% increase to $4.53 per share. With a current forward earnings multiple of 25, lower than its five-year average of 40, Nvidia’s stock price could potentially reach $181, representing a 63% upside from current levels. Stronger earnings growth and margin improvements could push Nvidia closer to the $200 mark.

Consider investing in Nvidia for potential gains, as the company has shown strong performance in recent years. The Motley Fool’s Stock Advisor team has identified 10 top stocks for investors, with Nvidia not making the cut. Past recommendations like Netflix and Nvidia have yielded significant returns for investors, showcasing the potential for growth with the right stock picks. Don’t miss out on future opportunities by joining the Stock Advisor program.



Read more at Nasdaq: Can Nvidia Stock Hit $200 in the Next Year?