Nvidia stock poised to soar to $300 as AGI market expands

In April 2025, Nvidia's stock was trading at around $95, but as of late July 2025, it reached close to $174 per share, experiencing significant growth. Over the past two years, the stock price has increased approximately 4 times, indicating strong market interest and investment confidence in Nvidia’s capabilities in high-performance computing, particularly in response to advancements in Artificial General Intelligence (AGI). Nvidia's revenue has surged, nearly doubling in the last year alone, with an astounding average growth rate of 69% over the last three years, further bolstering its market position. Analysts project this upward trajectory may continue, estimating revenues could grow from $131 billion in FY'25 to approximately $334 billion by FY'27 if the company sustains an average annual growth rate of over 60%. This burgeoning demand for high-performance computing solutions is crucial for various industries, potentially facilitating significant GDP growth globally. With this considerable expansion, Nvidia has successfully established a foothold in a rapidly evolving market, which is vital for future innovations in AI technologies. Notably, net margins are also improving; they have increased from about 25% in FY'19 to over 51% in FY'25, reflecting better economies of scale and a product mix skewed towards complex data center products. Nevertheless, the company faces challenges, such as rising costs and competition from firms like AMD. If Nvidia's earnings expand 2.5 times, projections suggest the price-to-earnings (PE) ratio could stabilize around 28. Analysts believe that as long as Nvidia maintains its revenue growth and margin levels, further stock price appreciation to over $300 per share in the coming years may be highly feasible. However, investors should be wary of the inherent risks and volatility associated with such aggressive growth expectations.