Feel the shock brought by the "AI faith"! Wall Street sounds the call for NVIDIA Corporation (NVDA.US) to rise to a market value of "5 trillion US dollars".
Before the performance is announced, Wall Street is racing to raise Nvidia's performance expectations and target prices. Nvidia's optimistic narrative of hitting a market cap of 500 billion dollars is gaining momentum! Cantor raised it to $240, with major banks like TD Cowen and Morgan Stanley collectively adding to the target stock price.
Before NVIDIA Corporation (NVDA.US), hailed as the "AI Chip Overlord," officially announces its quarterly performance on August 27th, a large number of well-known Wall Street analysts covering the semiconductor industry have recently cooperatively raised their performance growth expectations and target stock prices for this company, which boasts a market value exceeding $4 trillion. Most top analysts are optimistic about NVIDIA Corporation's market value surpassing $5 trillion, a historically significant record, amidst the flourishing global AI infrastructure construction trend.
Wall Street analysts have raised profit expectations and target stock prices for NVIDIA Corporation, the world's most valuable company, for the next 12 months. This stands in stark contrast to the soft performance of NVIDIA Corporation stock this week, which has seen a consecutive three-day decline with an accumulated drop of about 4%. Despite facing pressure from profit-taking at highs following a more than 70% surge since the April lows, analysts are highly optimistic about NVIDIA Corporation's performance growth prospects and stock price expectations.
NVIDIA Corporation's target price is climbing before quarterly performance - Wall Street analysts intensively raising target stock prices for 12 months
NVIDIA Corporation's current market value is approximately $4.3 trillion, still ranking first globally and significantly ahead of the second-ranked US tech giant, Microsoft Corporation (MSFT.US), with a current market value of about $3.75 trillion. Wall Street analysts firmly believe that the unprecedented global AI infrastructure construction trend centered around AI computational hardware is still in full swing. The sustained explosive demand for AI computational power globally is expected to drive continuous explosive growth in NVIDIA Corporation's performance and potentially lead to a "super bull market" in its stock price.
With the continued explosive expansion of AI computational power globally, coupled with the increasingly vast investments in AI infrastructure led by the US government and the ongoing massive investments by tech giants in constructing large data centers, it largely implies that the "AI faith" sweeping the world has yet to finish serving as a "super catalyst" for the stock prices of leaders in computational power. Investors long devoted to NVIDIA Corporation and the AI computational chain remain bullish on the stock performances of the companies leading the AI computational chain, including NVIDIA Corporation, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, and Broadcom Inc.
According to Loop Capital and Wedbush, the top Wall Street analysts, the firm commitment and investment in AI computational hardware at the core of the global AI infrastructure development trend are far from over, with the current stakes only just beginning. Under the unprecedented "AI computational demand storm," it is expected that the scale of this AI investment wave could reach up to $2 trillion.
Steadfast analyst expectations of NVIDIA Corporation's performance before earnings
According to institutional compilations of statistics, at least nine Wall Street analysts have raised their target stock prices for NVIDIA Corporation for the next 12 months just this week. Many analysts have shifted from cautious to bullish positions, raising the chip giant's average target price by 3% to nearly $194, marking a historical high expectation for NVIDIA Corporation's target stock price.
Based on Bloomberg data, this average target price level suggests a potential upside of over 10% from Wednesday's NVIDIA Corporation closing price. Among the various investment firms on Wall Street, nearly 90% of analysts covering NVIDIA Corporation have given it a "buy" equivalent rating.
It is worth noting that analysts expect NVIDIA Corporation to announce another quarter of double-digit revenue growth next week, serving as a positive catalyst for the AI computational chain industry. Analysts believe that any positive updates related to NVIDIA Corporation's sales in the Chinese market, despite existing uncertainties, should bring upward momentum.
In a recent report, the stock analyst team from Bank of America Corp mentioned, "As per media reports, as part of a 15% penalty exchange, the US government is willing to allow NVIDIA Corporation/AMD to deliver specific AI chips (H20/MI308) to the Chinese market. We believe that for these two chip companies, this represents a very significant incremental positive."
"AI Computational Storm Continues to Sweep the Globe! Next Stop, NVIDIA Corporation Sets Sail Toward $5 Trillion?"
According to new analysis by Wedbush, NVIDIA Corporation's upcoming quarterly performance could serve as another "positive catalyst" for the AI computational chain industry as the application of generative AI and AI intelligent agents continues to increase in enterprises and consumers. Based on Wedbush's channel survey, demand for NVIDIA Corporation's Blackwell architecture series of AI chips may exceed supply by up to 10 times.
Wedbush believes that the world is at the beginning stages of a multi-year AI infrastructure construction phase and sees this financial performance as a significant confirmation of this cycle. They remain extremely positive and believe that investors are still underestimating the super growth wave from the $2 trillion investment expected globally in AI infrastructure and applications over the next three years.
In their latest research report, Wedbush raised their target stock price for NVIDIA Corporation from $175 to $210, reflecting a bullish sentiment shared by many other Wall Street analysts, with most target prices exceeding $210. This suggests that they are betting on NVIDIA Corporation's market value surpassing $5 trillion. Suisse and KeyBanc have both raised their target prices for NVIDIA Corporation to $215, while TD Cowen and Cantor Fitzgerald have set target prices as high as $235 and $240, respectively. Additionally, Loop Capital predicts that NVIDIA Corporation's market value could surpass $6 trillion and has set a target price of $250.
As breakthrough AI tools, such as AI intelligent agents, permeate various industries globally, bringing massive demand for "AI inference terminal computational power," the future prospects of the AI computational infrastructure domain - including AI chips, HBM storage systems, enterprise SSDs, high-performance networks, and power equipment - will remain vast. The urgent need for companies to improve efficiency and reduce operating costs has been a significant driver of progress in AI application software.
With companies seeking to enhance efficiency and cut costs, the widespread application of core AI categories - generative AI applications and AI intelligent agents - is accelerating. AI intelligent agents can automate repetitive tasks, conduct large-scale data analysis and summaries based on powerful AI models, provide real-time monitoring insights, make appropriate decisions in complex situations, and ultimately enhance operational efficiency for companies. This efficiency translates to improved learning and work efficiency for individuals. AI intelligent agents can also participate efficiently in all stages of large-scale projects worldwide, from blueprint planning to implementation.
Wall Street analysis reveals that tech giants such as Alphabet Inc. Class C, Microsoft Corporation, Meta Platforms (formerly Facebook), and Amazon.com, Inc. are expected to collectively spend over $350 billion this year on data center expansion or construction centered around AI computational infrastructure. This figure points to a nearly 50% year-on-year growth on a strong 2024 base, expected to exceed $450 billion by 2026.
Loop Capital, bullish on NVIDIA Corporation's stock to $250, states in their research report: "Our research indicates we are stepping into the next wave of 'golden tide' for AI applications, and NVIDIA Corporation remains at the forefront of the impending demand that far surpasses expectations." The firm predicts that by 2028, the cumulative expenditure on AI computational infrastructure globally, driven by cloud computing giants, tech companies, and sovereign AI, with NVIDIA Corporation's AI GPU at its core, will likely reach around $2 trillion.
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