Nvidia eyes $200 milestone after stellar Q2: Is it time to buy?
Santa Clara, Saturday, 23 August 2025.
Nvidia’s stock is predicted to surge past $200 following a strong Q2 earnings report. Nine analysts have already raised their price targets this week, with one projecting a 60% increase. The average target is now nearly $194, a record high. Fueling this optimism is Nvidia’s consistent earnings, robust financials, and aggressive investments in R&D, particularly in AI. Will Nvidia continue to defy market headwinds and deliver substantial returns?
Analyst optimism and market dynamics
Wall Street analysts are increasingly bullish on Nvidia, revising their 12-month price targets upward ahead of the Q2 earnings release scheduled for August 27 [2]. At least nine analysts have raised their expectations this week, increasing the average price target by 3% to nearly $194 [2]. Cantor Fitzgerald has the highest target at $240, projecting a 36.8% rebound from Wednesday’s close [4]. HSBC’s target is $200, a 60% increase from its previous target [4]. These revisions reflect confidence in Nvidia’s sustained growth capabilities [4].
Factors driving nvidia’s potential
Several factors underpin the positive outlook for Nvidia. The company has a history of exceeding earnings expectations, maintains strong financial flexibility, and invests aggressively in research and development [1]. These elements contribute to a ‘strong buy’ rating for the stock [1]. Moreover, Nvidia benefits from the increasing capital expenditure of tech giants like Meta, Microsoft, Alphabet, and Amazon, with approximately 40% of Nvidia’s revenue derived from these companies [4]. These firms are investing heavily in data centers to meet growing computing demands, further fueling Nvidia’s growth [4].
China market impact
The potential for Nvidia to resume shipments to the Chinese market is a key variable [4]. Recent reports suggest that the U.S. has approved Nvidia to sell its H20 chips in China [4]. Analysts believe any positive updates regarding Chinese operations could provide additional upside [4]. Deutsche Bank estimates that if Nvidia secures licenses to resume shipments to China, its third fiscal quarter revenue could increase, potentially boosting earnings per share by 10%, even after accounting for a 15% ‘licensing fee’ to the U.S. government [4].
Market risks and skepticism
Despite the widespread optimism, some analysts caution that high expectations also mean any disappointment could trigger a market sell-off [4]. Technology stocks have experienced pullbacks, prompting concerns about inflated valuations and the costs associated with the AI boom [5]. A report from MIT indicated that while about 5% of AI pilot programs have achieved rapid revenue growth, the remaining 95% have had minimal impact on business [5]. OpenAI’s CEO, Sam Altman, has warned of potential investor pain as the AI bubble deflates [5].