MW Nvidia's $1.4 trillion comeback is just about complete. The stock is headed for a record.

By Britney Nguyen

This is why the stock is on pace to reach a new all-time closing high and reclaim its spot as the largest company by market capitalization

At the start of 2025, Nvidia Corp.'s stock was rocked by the innovative large language models coming out of China's DeepSeek and by new tariff policies being pushed by the Trump administration. By April, Nvidia's stock had plunged 37% to $94.21, according to Dow Jones Market Data.

On Wall Street, there was concern that the chip maker had lost its edge.

But on Wednesday, shares of Nvidia $(NVDA)$ climbed more than 3% during midday trading, putting the company on track for a new all-time closing high.

The chip maker's stock has been up for three consecutive days and was hovering around $153 on Wednesday, which is above its last record close of $149.43 in January, according to Dow Jones Market Data.

The company was also set to again overtake Microsoft Corp. $(MSFT)$ as the most valuable public company in the world by market capitalization. As of midday, Nvidia was looking at a market cap of $3.75 trillion, while Microsoft sat at $3.65 trillion.

Nvidia has gained about $1.42 trillion from its lowest close this year, in April, according to the data.

Earlier this month, analysts at Barclays raised their price target for the chip maker to $200, citing enthusiasm for Nvidia's ramp-up of its Blackwell artificial-intelligence platform. The analysts said Nvidia "has the most potential upside in our coverage" for the second half of the year and that "the supply chain sounds positive" about that period.

See more: Nvidia could become a nearly $5 trillion company. Here's how.

The Barclays team noted "healthy" utilization of Blackwell from an analysis of the supply chain and said it is in line with growing usage of agentic AI, or AI software that can complete tasks with little to no human guidance.

With that price target, the analysts see Nvidia reaching a $4.9 trillion market cap and its stock rising another 38%. The company's stock is up 11% so far this year.

Bernstein Research analysts also said in a note earlier this month that large chip stocks, including Nvidia, are positioned for more gains as major tech companies commit to large capital expenditures on rising AI demand, and as sovereign AI development grows.

See more: Chip stocks have beaten the S&P 500 this year. Here's where one analyst sees more gains.

Nvidia's Blackwell ramp has quelled investors' fears from earlier this year about continued spending on AI hardware, the analysts said. Customer spending on Nvidia's AI chips "is strong enough to cover over the bulk of the China bans," the Bernstein team said, referring to new U.S. export controls disallowing the chip maker from selling its specially designed H20 chips to Chinese firms.

The losses, which Nvidia calculated at $8 billion for the current quarter, "having been zeroed out of [Nvidia's] trajectory, now represent upside if [the bans] are relaxed or if the company can work around them," Bernstein said.

With Nvidia's next-generation Blackwell Ultra chips on track to roll out later this year alongside higher volumes of Blackwell shipments, Barclays said the company's gross margins should benefit in the second half of the year. Nvidia reported an adjusted gross margin of 61% for the fiscal first quarter in May but is targeting the mid-70% range.

-Britney Nguyen

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June 25, 2025 14:17 ET (18:17 GMT)

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