Image Source: Pixabay

Nvidia (NVDA) stock continued to remain under spotlight on Wall Street as it extended gains on Wednesday and surged 4% to trade near its 52-week high.

The share price of the chipmaker is close to its January 2025 high levels and with easing tensions in the Middle East, investors are expecting Nvidia to set a new all-time record.

NVIDIA’s stunning rise from about $90 to well over $152 in just a few months is not just a case of a stock bouncing back.

It’s a clear sign that investors are doubling down on the company’s central role in the booming AI landscape.

At the time of publication, Nvidia stock is trading at $152.88, very close to its 52-week high of 153.13.

Why Nvidia stock is rising today?

Market analysts are pointing to several key drivers behind this momentum.

Nvidia has become the go-to supplier for the powerful hardware fueling everything from sprawling data centers to the latest generative AI tools.

The company’s data center division, which is now its biggest revenue engine is riding a massive wave of demand.

As big tech players like AWS, Microsoft Azure, and Google ramp up their GPU-powered cloud offerings, NVIDIA is right in the middle of it.

Add to that its growing network of hardware partners delivering plug-and-play AI setups, and it’s clear why NVIDIA’s footprint keeps expanding.

Beyond its dominance in AI, NVIDIA is also stirring excitement among gamers.

The company’s upcoming release of the RTX 5050, a $249 graphics card built on its new Blackwell architecture marks a strategic push into the mainstream gaming market.

With 2,560 CUDA cores and 8GB of GDDR6 memory, it delivers a substantial leap in performance, promising around 60% better frame rates than the RTX 3050 at 1080p.

For the many gamers still running older GTX 1650s or early RTX models, this upgrade could be a game-changer.

The fresh surge in the stock price came as NVIDIA CEO and co-founder Jensen Huang kicked off a planned series of stock sales, recently selling 100,000 shares last Friday and Monday.

This is just the start of a larger, prearranged plan announced in March, which will see Huang sell up to 600,000 shares by the end of 2025.

If current market prices hold, the total value of the sales could reach around $873 million.

What analysts say?

Nvidia’s latest rally seems to be pushed by the recent upgrade by Loop Capital, which raised its 12-month price target for NVIDIA from $175 to $250 and reiterated a ‘buy’ rating.

Citigroup reaffirmed its ‘buy’ rating on NVIDIA and raised its price target from $150 to $180, reflecting growing confidence in the stock’s upside potential.

With a $170 price target, Barclays has given a ‘buy’ rating to Nvidia stock, as per TipRanks.

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