Nvidia (NASDAQ:NVDA) looked like it was pleateauing once more, possibly on the cusp of another decline, like the one it saw from November 2024 to April 2024. However, the semiconductor sector is starting to prove bears wrong once more, with a significant breakout in most AI-related stocks.

NVDA stock itself has broken through a key level, hitting a new all-time high. This is after a Loop Capital analyst raised his price target on Nvidia to $250, saying that “we are entering the next ‘Golden Wave’ of Gen AI adoption and NVDA is at the front-end of another material leg of stronger than anticipated demand.”

How High Could NVDA Stock Go Now?
$150 has been a strong resistance level for NVDA stock. But now that this ceiling has been broken through, the upside potential from here could be unprecedented.

What just happened is a very bulliush signal, since the price closed above the upper Bollinger Band. Our chief analyst Chris Johnson explains it here.

In short, it’s rare for mega-cap stocks like Nvidia to punch through the brand. When they do, follow-through buying could snowball, leading to significant gains. Things could still go wrong if the broader market’s momentum reverses, but that looks less likely.

NVDA Stock Has Lots of Room to Run
If you look at the earnings multiples you’re paying here, NVDA stock does not look very expensive compared to most other AI stocks that are hot at the moment. You’re paying just 36 times forward earnings for the linchpin of the AI hardware industry.

Wall Street has paid over 69 times forward earnings for this stock in May 2023. In June 2024, investors paid around 50 times forward earnings. NVDA stock could easily deliver another 25% to 30% upside from here if the broader market cooperates and allows for a 40 times forward earnings multiple this cycle.

— Omor IE

Out of 23,281 Stocks... Only ONE is This Profitable and Undervalued. [sponsor]
$3 billion+ in operating income. Market cap under $8 billion. 15% revenue growth. 20% dividend growth. No other American stock but ONE can meet these criteria... here's why Donald Trump publicly backed it on Truth Social. See His Breakdown of the Seven Stocks You Should Own Here.

Source: Money Morning