/NVIDIA%20Corp%20video%20chip-by%20Antonio%20Bordunovi%20via%20iStock.jpg)
Santa Clara, California-based NVIDIA Corporation (NVDA) is a key innovator of computer graphics and AI technology. The company provides graphics and compute and networking solutions. With a market cap of $2.9 trillion, NVDA develops a platform for scientific computing, AI, data science, autonomous vehicles, robotics, metaverse, and 3D internet applications, as well as focuses on PC graphics by serving clients worldwide.
Shares of this chip giant have outperformed the broader market considerably over the past year. NVDA has gained 91.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.7%. However, in 2025, NVDA stock is down 10.6%, compared to the SPX’s 2.7% rise on a YTD basis.
Zooming in further, NVDA’s outperformance looks more pronounced compared to the iShares Semiconductor ETF (SOXX). The exchange-traded fund has gained about 10% over the past year. However, the ETF’s 1.2% gains on a YTD basis outshine the stock’s double-digit losses over the same time frame.
NVDA's strong performance is driven by its advanced AI chips that process complex neural networks quickly. The demand for more powerful processors in AI infrastructure continues to grow, boosting NVDA's position in the market. The recent sell-off reaction to the cost-effective DeepSeek model is overblown, as it could actually increase AI usage and maintain demand for NVDA's chips. Additionally, the upcoming Blackwell chips are expected to further widen the performance gap in the AI market, driving continued demand for NVDA's high-end chips.
On Nov. 20, NVDA shares closed down marginally after reporting its Q3 results. Its adjusted EPS of $0.81 exceeded Wall Street expectations of $0.75. The company’s revenue was $35.1 billion, beating Wall Street forecasts of $33.3 billion.
For the current fiscal year, ended in January, analysts expect NVDA’s EPS to grow 134.8% to $2.77 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 43 analysts covering NVDA stock, the consensus is a “Strong Buy.” That’s based on 37 “Strong Buy” ratings, two “Moderate Buys,” and four “Holds.”
This configuration is more bullish than a month ago, with 36 analysts suggesting a “Strong Buy,” and three giving a “Moderate Buy.”
On Jan. 29, Morgan Stanley (MS) analyst Joseph Moore maintained a “Buy” rating on NVDA decreasing the price target to $152, implying a potential upside of 26.6% from current levels.
The mean price target of $178.09 represents a 48.3% premium to NVDA’s current price levels. The Street-high price target of $220 suggests an upside potential of 83.2%.
