Price target for NVIDIA (NVDA) lowered to $125 due to uncertainties in AI capex

From Yahoo Finance: 2025-04-27 07:14:00

A recent list compiled the top 12 AI stocks analysts are discussing, with a focus on NVIDIA Corporation (NASDAQ:NVDA). Reports from the IMF suggest that AI’s economic gains will surpass the costs of increased carbon emissions from data centers. The rise in global GDP from AI is estimated at 0.5% annually between 2025-2030.

Despite challenges like higher electricity prices and emissions, the economic gains from AI are expected to outweigh the costs. Greenhouse gas emissions could rise by 1.2% between 2025-2030, though transitioning to greener policies could limit the increase to 1.3 Gt. The social cost of extra emissions is projected at $50.7-$66.3 billion.

The Grantham Research Institute suggests that AI could reduce carbon emissions by advancing low-carbon technologies. However, successful climate action requires active involvement from governments, tech, and energy companies. AI stock selections were made based on news, analysis, and hedge fund data from Q4 2024.

NVIDIA Corporation (NVDA) offers AI solutions for various sectors. Deutsche Bank reiterated the stock as “Hold” with a reduced price target. While NVDA ranks 4th among AI stocks, there are options with higher return potential. One AI stock has gained momentum in 2025, outperforming popular choices by up to 25%.

If you are looking for an AI stock with significant upside potential trading at less than 5 times earnings, consider exploring the report on the cheapest AI stock. For more AI stock recommendations, check out the top 20 AI stocks to buy now and the 30 best stocks according to billionaires.

Read more: NVIDIA Corporation (NVDA) Price Target Cut to $125 Amid Rising AI Capex Uncertainty