The Nvidia stock reached a new all-time high on July 15, 2025, gaining around 4%. This continues its impressive rally: over the last three months, the stock rose by 42%, and even 805% compared to three years ago. On Friday, July 11, a price of up to $167.89 was already recorded, after the market capitalization surpassed the $4 trillion threshold for the first time – a historic milestone for the company and the entire stock market.
Drivers of the Current Price Increase
Artificial Intelligence (AI) as a Growth Driver
Nvidia’s business model is massively benefiting from the global AI boom. The demand for high-performance graphic chips (especially the new Blackwell series) continues to drive revenue and profit. Analysts see structural growth potential here and have significantly raised their price targets (e.g., Goldman Sachs to $185).
China Comeback
After months of export restrictions, Nvidia is now allowed to deliver its AI chips specifically developed for China back into the country – important news for further growth in the world’s second-largest economic zone. Nevertheless, uncertainties regarding tariffs and geopolitical tensions between the USA and China remain.
Market Environment
Despite global uncertainties (interest rates, tariffs, debt), tech stocks like Nvidia are reaching new records. Overall market sentiment is positive, which also applies to other indices like Nasdaq or DAX.
Investment Perspective Evaluation
Strengths
- Growth Sector: Nvidia is a leader in a key technology of the digital transformation.
- Innovative Power: Continuous new developments in AI chips secure competitive advantages.
- Market Capitalization: Nvidia is the first company ever to break the four trillion mark – a sign of investor confidence.
- Analyst Ratings: Many experts remain bullish and see further price potential, supported by high earnings expectations and strong fundamentals.
Risks
- Valuation Risk: After the strong rise, the stock is no longer attractively valued; a correction remains possible.
- Geopolitical Risks: New export restrictions or trade conflicts could again burden the business in China.
- Cyclical Dependency: A downturn in investments in AI technologies would directly affect Nvidia’s business.
Should You Buy Now?
The decision depends on your investment strategy:
- For long-term investors who believe in structural growth in the AI field, Nvidia remains attractive despite high valuation – especially as analysts continue to expect rising prices.
- Short-term traders should consider: after such a strong rise, profit-taking by other market participants is always possible; volatility may increase.
For an entry, a gradual strategy (cost-averaging effect) is recommended to cushion price fluctuations.
“We are long on Nvidia – and actively benefiting from it.”
Conclusion
Nvidia’s recent records reflect both fundamental strength and high expectations. The comeback in China and the unabated momentum in the AI sector continue to speak for the company.