1 Wall Street Firm Just Gave Nvidia Stock a $250 Price Target. Is It Time to Buy?
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Nvidia (NVDA -2. 71%) stock currently trades for around $155. However, Loop Capital just gave Nvidia a new price target of $250 per. That indicates around 60% upside from today's price, but...
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July 1, 2025
06:45 AM
The Motley Fool
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Nvidia (NVDA -2. 71%) stock currently trades for around $155
However, Loop Capital just gave Nvidia a new price target of $250 per
That indicates around 60% upside from today's price, but the implications of a $250-per- stock are far greater
If Nvidia's stock rose to that level, the company would be worth more than $6 trillion
There's never been a $4 trillion company, let alone a company valued at $6 trillion
However, when you examine the reasons behind Loop Capital's $250 price target for Nvidia, there's solid information supporting the thesis
GPUs are becoming more widely used Nvidia is benefiting from an artificial intelligence (AI) boom, as its graphics cessing units (GPUs) are powering the models behind these AI innovations
GPUs excel at workloads that require immense computing power, as they can cess multiple calculations in parallel
Furthermore, GPUs can be connected in clusters to amplify this effect
Loop Capital analyst John Donovan stated that GPUs are becoming more for non-AI workloads
Currently, 15% of the computing capacity today is non-CPU-based
However, he believes the figure will climb to a range of 50% to 60% by 2028
This presents a $2 trillion market opportunity for Nvidia
So, Loop Capital isn't just blowing smoke; it's got real numbers to back it up
Those figures are jections, but they the path that legendary Nvidia CEO Jensen Huang has spoken regarding computing's evolution
With Nvidia being dominant in the data center GPU sector (most estimates have Nvidia at a 90% or greater market ), it will reap the lion's of this continued growth
Still, there is one item that Donovan cautioned investors on
Nvidia's valuation hovers around its big peers One caveat that Donovan gave in his analysis of Nvidia's stock is that it continues to trade for roughly 30 times forward earnings
While this mark has historically been expensive, most of Nvidia's big peers are also trading around this range despite having slower growth than Nvidia
NVDA PE Ratio (Forward) data by YCharts Take Apple, for example
Its stock traded at an average of 29 times forward earnings since the start of 2023, despite growing revenue at a maximum rate of 6% during that time frame
Nvidia's growth is far more rapid than that, and it has the staying power to continue dering its elevated growth levels
I think it's safe to assume that Nvidia can continue trading around 30 times forward earnings, unless something drastic happens with interest rates (they would have to rise significantly from today's levels)
So, is Nvidia a buy at today's levels
There's still significant growth potential in the AI trend, as well as in the broader computing space
Nvidia is the market leader and is one of the best ways to capitalize on this computing buildout boom
Based on Nvidia's size alone, it will be challenging to der massive returns comparable to those in 2023 and 2024
However, I believe Nvidia can outperform the market, making it an excellent stock to buy right now
Keithen Drury has positions in Nvidia
The Motley Fool has positions in and recommends Apple and Nvidia
The Motley Fool has a disclosure policy.
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