Nvidia Stock Surges Amid Institutional Confidence, Challenges

Nvidia's stock has rebounded 20.6% over the past 90 days in 2025, with Barclays raising its price target to $200, which would value the company at nearly $5 trillion. The company's strong growth outlook is fueled by leadership in AI chip technology, particularly the adoption of its Blackwell platform and anticipated compute revenue increases in the second half of the year. Despite a $5.5 billion charge resulting from U.S. chip export restrictions to China, Nvidia is adapting with new chip designs for the Chinese market and a focus on U.S. AI infrastructure. Institutional investors such as Cathie Wood's Ark Invest have increased holdings, signaling confidence and contributing to gains in related cryptocurrency markets. Analysts recommend buying Nvidia stock on dips, citing robust data center demand and positive long-term prospects. Some caution remains regarding short-term challenges and profit margins, though improvements are expected as Blackwell shipments increase.