Prediction: Nvidia Could Be Headed to $150 in 2025

Nvidia (NASDAQ: NVDA) stock has been one of the market's top performers in recent years, soaring a mind-boggling 2,600% over the past five. And this year, the trend continues with Nvidia stock heading for a 150% gain. All of this is thanks to the company's dominance in the artificial intelligence (AI) chip market, where it holds more than 80% share.

And Nvidia hasn't stopped there but has developed a broad range of AI products and services, helping the company deliver billions of dollars in earnings quarter after quarter. In fact, Nvidia has been on a roll, growing quarterly revenue in the triple digits year over year. So now, the natural question is: With all of this positive momentum, where is Nvidia's stock going to land in 2025?

Today, Nvidia shares trade for about $124 following the company's 10-for-1 stock split in June. A stock split doesn't change the total value of a company but lowers the price of each individual share through the issuance of new shares to current shareholders. This makes it easier for a broader range of investors to access the stock. From this new price level, my prediction is Nvidia could be headed to $150 next year as gains continue but potentially at a slower pace than in recent times. Let's find out more.

Record data-center revenue

First, some background on Nvidia. The company sells graphics processing units (GPUs) used to power many tasks -- from gaming to AI. Gaming actually was Nvidia's biggest business a few years ago, but as the AI boom accelerated, so did Nvidia's AI business. Data-center revenue, accounting for 87% of Nvidia's total revenue, came in at more than $26 billion in the most recent quarter -- a record and a triple-digit gain from the prior year.

Other companies sell AI chips, but Nvidia's are particularly sought-after due to their speed -- they're the fastest around, and Nvidia says this high performance can save customers money over the long term. So, while they pay more for a Nvidia GPU today, they're likely to have a lower-total cost of ownership over time.

Companies developing major AI projects clearly are on board because demand for Nvidia's soon-to-launch architecture Blackwell is surpassing supply. Nvidia Chief Executive Officer Jensen Huang says he expects this trend to continue well into next year even as Nvidia works night and day to bring supply to the highest levels possible. In a recent interview with CNBC, Huang even said demand for the company's new Blackwell chip is "insane."

Billions in Blackwell revenue right around the corner

All of this should support the idea of more gains for Nvidia stock. The company predicts that after ramping production of Blackwell in the fourth quarter, Nvidia also should see "several billion dollars" in revenue from the platform in that quarter too. We also should expect a clear picture of how the demand for Blackwell translates into earnings in the following quarters throughout 2025.