Nvidia (NASDAQ: NVDA) shares climbed another 1.1% in early trading on Thursday, extending gains after hitting a record high above $154 the previous day. The rally comes on the back of renewed bullishness across Wall Street for the AI chip sector.
Loop Capital analyst Ananda Baruah raised his Nvidia price target to $250 on Wednesday—the highest among Wall Street analysts currently tracked by Yahoo Finance. Baruah’s target implies Nvidia’s market capitalization could reach a staggering $6 trillion in the coming years. He predicts the total addressable market for AI chips could surge to $2 trillion by 2028.
Baruah said, “We are entering the next ‘Golden Wave’ of Gen AI adoption and Nvidia is at the forefront of another material leg of stronger-than-anticipated demand.” He cited emerging demand from governments, significant commitments from Big Tech hyperscalers, and the rollout of Nvidia’s latest Blackwell AI chips.
Bank of America’s Vivek Arya also weighed in, forecasting AI chip demand could reach $650 billion by 2030, up from $201 billion in 2025. Arya called Nvidia the “key beneficiary,” citing its clear technological lead over new entrants.
Adding further momentum, Micron Technology (NASDAQ: MU), a key Nvidia supplier, reported better-than-expected Q3 earnings, driven by strong demand for AI-related memory chips.
Despite some investor concerns about monetization challenges and growing competition from emerging AI firms like China’s DeepSeek, Nvidia continues to ride the AI investment wave that has driven its valuation higher through 2025.
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