Nvidia Just Getting Started: Stock Heading to $150 and Possibly $200 by year’s end

A lot of people think Nvidia is overvalued or a bubble, but I think Nvidia will easily get to $150 by the end of July or beginning of August and $200 by the end of the year.

AI, and Nvidia along with it, are generational investment opportunities. Nvidia has a first mover advantage in which they’ve continuously blown expectations out of the water in earnings reports but they don’t settle for just that. They constantly innovate with new chips such as Blackwell coming out that will be even more efficient and economical.

Yes, Nvidia’s stock valuation of $3T is high but at one point $1T was unthinkable. Then Apple crossed that line and they didn’t just stop with iPhones - they expanded into services. Nvidia can do the same such as in: self driving cars, human robots, weather forecasting, safety whether in manufacturing, complex companies or industries, medical diagnosis or cures for diseases will be a huge boom for the stock going forward. The possibilities for AI are exponential. Whether we like it or not, trillion dollar companies seem to be becoming the norm - of which Broadcom could be the next of what has been an exclusive club until now.

Every time there have been investors saying Nvidia couldn’t possibly go up anymore or beat earnings again, Nvidia shatters expectations and the stock goes up. How many times have there been articles saying AMD would take Nvidia’s place or had a Nvidia killing chip - yet after years that hasn’t happened and Nvidia’s only gotten stronger.

That’s not to say over time Nvidia won’t lose some market share or have a down year or miss an earnings report, it’s not always going to be 100% rosy or smooth sailing - after all it is a chip stock fundamentally. There are risks such an economic downturn, human caused climate change, regulations, demand on the power grid that all threaten AI. At the same time, I just believe that at the end of the day AI will play a large role in the future and with that Nvidia is at the center. Chips are in so many things and the potential for AI to change the world really could just be the start of the next Industrial Revolution.

Plus given how bloated the valuations of every stock are right now - and how much $Alphabet-C (GOOG.US)$ $Alphabet-A (GOOGL.US)$ , $Amazon (AMZN.US)$ , $Microsoft (MSFT.US)$ , $Apple (AAPL.US)$ are increasing their valuations - Nvidia is far from alone with high valuations. I don’t think AI is a bubble but I do think that Nvidia and the market as a whole can get ahead of themselves.

Overall, this is likely just the initial first stage - not the end - of Nvidia’s growth story.