Nvidia’s meteoric rise has captivated markets in 2025, but one veteran investor believes the rally is far from over.
David Katz, chief investment officer at Matrix Asset Advisors, just revealed a bold new price target for the AI chipmaker that’s already shattered expectations this year.
Katz told CNBC this week that he expects Nvidia stock (NVDA) to continue to climb up to 20%, projecting a new target of $160 per share.
The prediction comes after Nvidia has already delivered over 80% gains year-to-date, driven by explosive demand for AI data center chips and continued optimism in generative AI development.
“We think Nvidia has more room to run,” Katz said. “It’s still the clear leader in AI infrastructure, and demand is only accelerating.”
Why Nvidia’s Rally May Not Be Over
Nvidia has been at the center of the artificial intelligence boom, particularly in powering the high-performance computing behind tools like ChatGPT, Google Gemini, and enterprise AI stacks.
Katz outlined three major factors driving his bullish thesis:
Sustained AI Demand: Major cloud providers and government contractors continue to snap up Nvidia’s H100 and upcoming Blackwell chips, helping the company maintain dominance in the sector.Impressive Earnings Growth: Nvidia’s profit margins remain strong, and the company is expected to post another quarter of record-breaking revenue later this month.Clear Competitive Moat: “Even as AMD and Intel try to catch up, Nvidia remains several laps ahead,” Katz emphasized.
Big Money Still Betting on NVDA
Despite its already elevated valuation, Nvidia continues to attract institutional interest. Hedge funds, pension managers, and sovereign wealth funds have steadily increased their exposure, seeing NVDA not just as a tech stock, but as a “core infrastructure play” in the digital economy.
“There’s a scarcity of pure AI infrastructure names,” said Katz. “Nvidia is that rare combination of tech growth and cash-generating power. That’s why the big money is still buying.”
Risks Remain—but So Does the Momentum
While the outlook is bright, Katz did note several risks that could temper gains:
Geopolitical tensions involving China and potential export restrictions on Nvidia’s top-tier chips.Valuation concerns, with the stock trading at a high price-to-earnings ratio.Competitive pressure from rising chipmakers and open-source hardware initiatives.
Still, for long-term investors, Katz believes these risks are manageable compared to the upside potential.
“You may get volatility, but the long-term trend is still very favorable,” he said.
– More Nvidia Coverage and Updates
Get the latest headlines delivered to your inbox each morning. Sign up for our Morning Edition to start your day. FL1 on the Go! Download the free FingerLakes1.com App for iOS (iPhone, iPad).
This content is brought to you by the FingerLakes1.com Team. Support our mission by visiting www.patreon.com/fl1 or learn how you send us your local content here.
