Nvidia (NVDA) stock has been trending steadily higher over the past couple of years, delivering stellar capital gains of about 1,053% for its shareholders since October 2022. The company is a leader in the graphics processing units (GPUs) central to the artificial intelligence (AI) revolution. With soaring demand for its AI offerings, Nvidia is the market's top-performing mega-cap stock.

However, like any high-flying stock, Nvidia recently faced some turbulence. Concerns have emerged around a potential slowdown in AI spending, delays in the release of its much-anticipated AI GPU, “Blackwell,” and mounting pressure on profit margins. These issues led to a temporary pause in the stock's meteoric rise.

Despite these short-term concerns, Nvidia’s rally has resumed. In just one month, the stock has surged by nearly 24% - far outpacing the broader market, as represented by the S&P 500 Index ($SPX). This impressive bounce-back showcases investors’ confidence in the stock and the strong underlying demand for its products.

Year-to-date, Nvidia stock has now climbed about 190%. Interestingly, at least one Wall Street analyst believes Nvidia stock could still go higher, setting a price target of $200 per share - which is the highest on the Street.

With Nvidia continuing to lead in the AI market and the demand for advanced GPUs only growing, let’s explore the factors that could push Nvidia stock even higher.

Solid Q3 Numbers to Push NVDA Stock Higher

Nvidia will release its Q3 earnings numbers next month on Nov. 20. Despite the short-term concerns, the solid demand for NVIDIA Hopper, Computing, and Networking platforms could help the company post strong Q3 results that will likely boost its share price.

A significant factor in Nvidia’s success is the booming growth in its Data Center revenue. Since the beginning of fiscal 2024, this segment has consistently added approximately $4 billion in revenue each quarter. In Q2 of fiscal 2025, Data Center revenue reached $26.3 billion, marking a 16% sequential growth and an impressive 154% increase year-over-year. Notably, its computing revenue has more than doubled in Q2, and its networking revenue has more than tripled compared to last year.

Nvidia’s strength in the Data Center space is driven by surging demand from cloud service providers (CSPs) and major companies across the consumer, internet, and enterprise sectors. Looking ahead to Q3, Nvidia’s management has guided for revenue of $32.5 billion, which represents an 8% increase quarter-over-quarter and 79% year-over-year. This positive outlook suggests that the company’s Data Center segment will continue to flourish, fueled by growing customer adoption of its Hopper architecture.

It’s worth noting that the Hopper H200 platform began ramping up in Q2. The platform builds on the success of its predecessor with improved memory bandwidth, making it highly attractive to large CSPs and enterprise companies. With improving supply, Nvidia expects Hopper demand to remain strong, especially in the second half of fiscal 2025.

Additionally, Nvidia’s next-generation Blackwell platform is expected to make a significant contribution starting in Q4. The demand for Blackwell already exceeds supply, and Nvidia is poised to generate several billion dollars in revenue in Q4 from this platform. This strong demand is expected to carry over into the next fiscal year, providing a solid foundation for future growth.

Beyond its Hopper and Blackwell platforms, Nvidia’s Networking segment is also performing well, thanks partly to the strong demand for Ethernet for AI. This is expected to further boost the company’s top line in Q3.

While the company is likely to deliver solid top-line numbers, the Data Center mix continues to shift to new products, which could impact its margins in the short term. Nonetheless, Nvidia’s bottom line could continue to grow at a solid pace. Analysts expect Nvidia to post earnings of $0.69 per share, compared to $0.38 in the prior-year quarter.  

What’s Next for Nvidia Stock?

Nvidia’s solid financials in Q3 and upbeat Q4 guidance could significantly boost its share price. To reach the $200 mark, Nvidia stock would need to rise by about 39% from current levels — a target that appears achievable, given the company’s leadership in AI and the increasing adoption of generative AI across industries.

Generative AI is opening new revenue streams for Nvidia’s customers, allowing them to enhance productivity and expand their businesses. This, in turn, has prompted data center operators to increase their capital spending on accelerated computing, with a particular focus on GPUs, further supporting Nvidia’s growth.

The Bottom Line on NVDA Stock Right Now

Nvidia’s large installed base, constant innovation, new product launches, and expanding software offerings position the company for continued growth. As a result, analysts maintain a “Strong Buy” rating on NVDA stock, with an average price target of $150.99 - which may soon be revised upward.

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