Wednesday, June 25, 2025, is an inflection point for Nvidia (NVDA). Despite CEO Jensen Huang initiating a long-term stock sale, NVDA stock closed at $154.31, a new record. The company added 4.33% to its share price, triggering several dozen news alerts.
Unfortunately, analyst rating upgrades lifted the share price. Loop Capital raised its price target to $250. This sets the highest price target, predicting a nearly $3 trillion addition to its market capitalization.
Risks
Nvidia stock would have benefited if fundamental catalysts sparked the stock surge. For example, Chinese firms continue to work on DeepSeek and variants of the AI. They are building large language models that require far fewer graphics chips. Additionally, they do not need the latest chips to outflank Western AI development.
When the U.S. initially announced tariffs against China, Nvidia lost $2.5 billion due to a ban on H20 chips to China. Markets do not seem to care. Markets did not have any concerns about the $8 billion loss from the trade restriction on Wednesday.
Fortunately, Nvidia solidified many deals with companies in the United Arab Emirates and Saudi Arabia.
Companies around the world will continue to join the race to build AI. As this plays out, only a few of the top firms will lead the market. The chances are high that Microsoft (MSFT), through OpenAI, Elon Musk’s Grok, and Perplexity, will dominate the AI market.
