TLDR
- Nvidia stock reached a record $4 trillion market cap on July 9, making it the first company to hit this milestone
- The stock gained 171% in 2024 and is up nearly 24% in 2025, driven by AI chip demand
- Jim Cramer advised investors to “Please own it, don’t trade it” following the stock’s historic run
- Wall Street analysts maintain a Strong Buy rating with an average price target of $176.29
- Q2 earnings on August 27 will be crucial, with analysts expecting $1.00 per share on $45.62 billion revenue
Nvidia stock closed at a record $164.92 on July 11, extending its winning streak after becoming the first company in history to reach a $4 trillion market valuation. The milestone was achieved on July 9, with momentum carrying through subsequent trading sessions.
The $4 trillion figure represents approximately 14% of the entire U.S. GDP. Nvidia shares climbed 1.2% to $166 on July 11, marking five gains in the last six sessions as investors position ahead of next month’s earnings report.
The chipmaker’s explosive growth stems from the generative AI boom following ChatGPT’s rollout. Nvidia stock gained 171% in 2024, ranking among the year’s top performers. So far in 2025, shares have climbed nearly 24%.
Strong demand for Nvidia’s AI chips continues to drive performance. The company’s latest Blackwell platform is witnessing robust adoption, with cloud players like CoreWeave deploying Blackwell-powered servers in their data centers.
Nvidia has partnered with Dell Technologies, Hewlett Packard Enterprise, and Super Micro Computer to deliver Blackwell-based systems globally. These partnerships expand the company’s reach across multiple sectors and geographic markets.
Wall Street Maintains Bullish Outlook
Goldman Sachs analyst James Schneider recently initiated coverage with a Buy rating and $185 price target. He highlighted Nvidia’s leadership in AI and rising demand across industries, viewing the stock as a solid entry point for long-term investors.
Several top firms share this optimistic view. Bernstein, UBS, and Citi have all reiterated Buy ratings with price targets between $175 and $200. Analysts see Nvidia as more than just a chipmaker, viewing it as the core supplier of AI infrastructure tools.
According to TipRanks, the stock has received a Strong Buy consensus rating. The rating includes 37 Buys, four Holds, and one Sell assigned in the last three months. The average price target sits at $176.29, suggesting potential upside of 6.89% from current levels.
In Q1 FY26, Nvidia posted $44.06 billion in revenue, up 69.2% year-over-year. The growth was driven by record demand in its data center segment, the company’s primary revenue driver.
Earnings per share came in at $0.81, beating analysts’ consensus estimate of $0.74 per share. The strong results helped fuel the stock’s recent rally and reinforced investor confidence in the company’s execution.
Trade Tensions Continue to Create Headwinds
Despite the positive momentum, geopolitical tensions and export restrictions continue to impact Nvidia’s business with China. The company has faced several rounds of regulatory pressure this year, including restrictions on exports of its A100 and H100 GPUs to China.
In the April quarter, Nvidia took a $4.5 billion charge related to these restrictions. The company said it could have generated another $2.5 billion in revenue without the export curbs.
CEO Jensen Huang has repeatedly warned that these controls could damage U.S. chipmakers. He argues they threaten the country’s position as a global tech leader and could impact American competitiveness.
“If we want the American technology stack to win around the world, then giving up 50% of the world’s AI researchers is not sensible,” Huang said on CNBC. His comments reflect ongoing concerns about the impact of trade restrictions on the company’s growth potential.
However, demand for Nvidia’s chips remains strong in other regions, including the Middle East. In May, the company announced it would supply AI chips to Humain, an emerging tech firm in Saudi Arabia.
CNBC’s Jim Cramer offered a blunt six-word response to questions about Nvidia stock positioning. “Please own it, don’t trade it,” Cramer said in an X post on July 9, advising investors to take a long-term approach.
Cramer called Nvidia “the biggest and the best” in a June X post when the stock hit a new record high. He added in another post that Nvidia stock is up 42,000% since his first recommendation.
The next major catalyst is Nvidia’s Q2 FY26 earnings report, expected on August 27. Wall Street analysts expect the company to post earnings of $1.00 per share on revenue of $45.62 billion.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
