Chip stock Nvidia (NASDAQ:NVDA) has already made a name for itself not only in chips, but increasingly, as part of the growing rise of artificial intelligence (AI) as well. Yet when word emerged about Nvidia’s next potential path, investors turned on it harder than a rabid raccoon getting a hug. Now, Nvidia’s down over 2% in Tuesday afternoon’s trading, but what in the world spooked investors out of Nvidia this hard?
The answer is just two words, but two words that carry a lot of meaning: “cloud services.” Of course, Nvidia already has a certain level of involvement in cloud services—the DGX Cloud is Nvidia’s baby, after all—but it’s looking to press farther into the field now. That’s setting it up to challenge some of the biggest names in computing, from Amazon (NASDAQ:AMZN) to Alphabet (NASDAQ:GOOG) to even Microsoft (NASDAQ:MSFT). Meanwhile, those very same companies are working on their own breed of chip to directly undercut Nvidia, suggesting they know the threat they face.
Meanwhile, Nvidia is also facing some new rumors that emerged around its upcoming line of video cards and the like. New reports suggest that the RTX 5090 is indeed set for a release in late 2024, and Nvidia is also engaging in some redesigns as well. With AMD (NASDAQ:AMD) out to lose its line of RDNA4s, Nvidia is following suit by ditching its multi-chip module line. The multi-chip modules won’t be out altogether, those reports note, but will rather be kept for data center cards and similar systems with, once again, applications in AI.
What is the Stock Price Prediction for Nvidia in 2025?
Analysts, meanwhile, are almost completely behind Nvidia. With 39 Buy ratings and one Hold, Nvidia stock is considered a Strong Buy almost unanimously. Further, with an average price target of $644.69, Nvidia stock boasts a 47.9% upside potential.
