Nvidia shares surged to a record high amid renewed AI optimism and bullish forecasts from CEO Jensen Huang. With strong fundamentals, a 92% GPU market share, and accelerating demand for AI infrastructure.
NVIDIA's average analyst price target stands at $172. To capitalize on the momentum cost-effectively, consider a bull call spread — buy the $170 call and sell the $180 call expiring August 1 for $NVDA.
Nvidia Shares Hit Record High on Renewed AI Optimism
Nvidia shares hit a fresh record high on Thursday, marking a turnaround for the chip company following a rocky start to the year marked by US-China tensions over critical artificial intelligence technology. The AI chip maker is the most valuable U.S. company with a market capitalization of $3.78 trillion.
The rally came as Nvidia chief executive Jensen Huang gave a bullish outlook at the company’s annual shareholder meeting on Wednesday about its ability to continue its explosive growth over the next decade. He cited the “multitrillion-dollar opportunity” of AI and robotics.
“We are at the beginning of a decade-long AI infrastructure build-out: demand for sovereign AI is growing around the world,” Huang told shareholders.
Going forward, there’s a possibility that Nvidia’s business will continue to thrive thanks to the ramp-up of Blackwell production along with the rising demand for AI accelerators not only from hyperscalers but also from sovereign states. This could have a positive effect on Nvidia’s shares, which remain a great investment at the current price.
Nvidia Rides the Chip Boom After Oversold Dip
“Nvidia is riding a general chip wave,” said G Dan Hutcheson, vice-president at TechInsights, with markets recovering from the impact of Trump’s “liberation day” tariffs and the DeepSeek breakthrough. “Nvidia was oversold because of both.”
NVIDIA is starting 2025 strong with a 92% market share in the AIB GPU market, whereas the competition is down to single digits. Looking at the AIB market share, NVIDIA's share rose by 8.5% in Q1 2025, a massive uptick for the company, whose previous market share dropped to 84%.
Source: Jon Peddie Research
Analysts See More Upside for Nvidia
Earlier this month, analysts at Barclays raised their price target for the chip maker to $200, citing enthusiasm for Nvidia's ramp-up of its Blackwell artificial-intelligence platform. The analysts said Nvidia "has the most potential upside in our coverage" for the second half of the year and that "the supply chain sounds positive" about that period.
The rise follows a note from Loop Capital, which raised its price target for Nvidia to $250 from $175. The firm kept its “buy” rating and said demand for generative AI could grow faster than expected.
“We are entering the next ‘Golden Wave’ of Gen AI adoption and Nvidia is at the front-end of another material leg of stronger than anticipated demand,” said Loop Capital analyst Ananda Baruah.
NVIDIA's average analyst price target stands at $172.22 as of June 2025, with recent adjustments reflecting growing optimism about AI infrastructure growth
Source: TigerGPT
Option Strategy: Bull Call Spread
Buy $170 Call expiring August 1
Sell $180 Call expiring August 1
Source: Tiger Trade App
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