Should You Buy Nvidia Stock Today? Analysts Weigh In

TLDR

Table of Contents

Nvidia stock has surged 69% since April 7, 2025, reaching a $4 trillion market cap and becoming the world’s first company to hit this milestone
The stock trades at premium valuations with trailing P/E ratios above historical averages after the recent rally
Consensus estimates project 53% revenue growth to nearly $200 billion in fiscal 2026, driven primarily by data center business
McKinsey projects $5.2 trillion in AI data center spending by 2030, with 60% going to chip and computing hardware companies
Enterprise AI software revenue doubled year-over-year in Q4 2024, with the enterprise AI market expected to reach $104 billion by 2030

Nvidia shares have roared back to life after a rough start to 2025. The chipmaker bottomed out on April 7 at a 52-week low before mounting an impressive comeback.

The stock has climbed 69% since that April low. This surge pushed Nvidia to become the first company ever to reach a $4 trillion market capitalization.

The rally erased concerns from earlier in the year when the stock looked undervalued. Nvidia’s consistent growth in artificial intelligence chips had made the earlier dip seem unjustified.

The recent gains have pushed valuation metrics back to premium levels. The trailing price-to-earnings ratio now sits well above the low 30s seen in early April.

Back in April, investors could buy shares at a trailing P/E in the low 30s. The forward P/E ratio of less than 25 looked even more attractive at the time.

The stock was trading at a discount to the Nasdaq-100’s average earnings multiple of 32. Early buyers who recognized this opportunity are now sitting on substantial gains.

Strong Growth Projections Drive Optimism

Wall Street analysts expect robust growth to continue. Consensus estimates project a 53% increase in Nvidia’s revenue for fiscal 2026 to almost $200 billion.

The data center business remains the primary growth driver. This segment generated 88% of total revenue in the previous quarter.

Analysts expect the data center business to account for roughly 90% of revenue in fiscal 2026. This would translate to approximately $180 billion in data center revenue.

That figure represents a 56% increase over the previous fiscal year. The growth stems from massive demand for Nvidia’s AI graphics processing units.

These GPUs are being deployed in data centers for AI model training and inference. Bank of America estimates Nvidia maintains an 80% to 85% market share in the AI chip market.

Bank of America analyst Vivek Arya notes that Nvidia’s customer base scale and supply chain control help maintain its market position. This competitive advantage should keep the company as the top player in this lucrative market.

Massive Market Opportunity Ahead

McKinsey research reveals the scope of the opportunity ahead. The consulting firm projects $5.2 trillion in spending on AI data centers by 2030.

An additional $1.5 trillion is expected for data centers handling non-AI workloads. The largest portion of this investment – 60% – will go toward chip and computing hardware companies.

This could create a $4 trillion potential revenue opportunity for Nvidia’s data center chip business over the next five years. Even if the company loses some market share to competitors, exponential growth remains possible.

Enterprise Software Shows Promise

The enterprise AI software division is gaining traction. In February 2025, management reported that enterprise revenue almost doubled year-over-year on a quarterly basis.

Customers are deploying Nvidia’s solutions to fine-tune AI models and develop agentic AI applications. The company’s generative AI software platform helps customers increase accuracy and reduce response times for large language models.

The enterprise AI market is expected to generate $104 billion in revenue by 2030. This growing segment could become a meaningful contributor to Nvidia’s overall growth.

Current trading shows the stock at $173.00 with a market cap of $4.2 trillion as of July 17, 2025.

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: