NVIDIA Shares Hit New Record High: ETFs in Focus

NVIDIA NVDA shares surged over 4% on Jun 25, 2025, reaching an all-time closing high of $154.31. The stock also set a new intraday high during the trading session, surpassing its previous record close of $149.43 set on January 6.

Post-Earnings Rally Drives Momentum

This rally follows a strong first-quarter earnings report in late May. NVIDIA’s results topped Wall Street’s expectations and reflected the company’s resilience despite a new U.S. export ban on its chip sales to China—one of its largest markets. Since the May 28 report, NVIDIA’s stock has soared over 14%, breezing past the S&P 500’s approximately 3.4% gain during the same period.

Bullish Estimate Revisions

Eight out of 16 analysts covering NVIDIA stock have raised their earnings estimates for the July quarter over the past 30 days, while only three have lowered theirs. Additionally, 13 out of 15 analysts have increased their estimates for next year, with only one reducing theirs.

The Zacks Consensus Earnings Estimate for the July quarter stands at 99 cents, up by two cents over the past 30 days. The estimate for the current year has increased by 7 cents to $4.25 per share, while the estimate for next year has risen by 18 cents to $5.60 per share.

Bullish Analyst Target: $250 Price Forecast

Based on short-term price targets offered by 42 analysts, the average price target for NVDA comes to $174.83. The forecasts range from a low of $100.00 to a high of $220.00. The average price target represents an increase of 18.21% from the closing price of $147.90 recorded on June 24.

Meanwhile, Loop Capital analyst Ananda Baruah just raised his price target on NVIDIA to $250 — the highest among analysts tracked by Yahoo Finance. Loop Capital projects the AI chip market could grow to $2 trillion by 2028. Loop Capital is betting big on NVIDIA’s pricing and margin power.

Any Wall of Worry?

Despite the optimism, questions remain about whether demand for AI infrastructure will continue to grow. Many Big Tech firms are currently spending more on building AI technology than they are generating in revenue from it.

NVIDIA’s Rocky Start to 2025

Earlier this year, NVIDIA's stock faced challenges. After its January record, shares dropped sharply due to growing AI competition and trade tensions. In late January, a budget AI model from Chinese startup DeepSeek triggered concerns over NVIDIA’s chip demand.

In April, additional pressure came from steep tariff announcements by President Trump, including a ban on NVIDIA’s H20 chips to China. The export restrictions led to an estimated $2.5 billion revenue loss in Q1 and a projected $8 billion shortfall in Q2.

April Lows and May Rebound

NVIDIA shares hit their lowest close in over a year in mid-April. However, momentum returned in May, fueled by major deals with Saudi Arabia and the United Arab Emirates to supply vast quantities of NVIDIA’s AI chips. This resurgence briefly propelled NVIDIA above Microsoft MSFT, making it the most valuable company in the world in early June (read: ETFs to Bet On as NVIDIA Reclaims Market Cap Crown).

Furthermore, NVIDIA has expanded collaborations with major cloud providers, including Oracle, Google, and Microsoft. Its Blackwell-based cloud instances are now available on AWS, Google Cloud, Microsoft Azure and Oracle Cloud Infrastructure.

Tech Sector Sees Renewed Investor Interest

The broader tech sector is experiencing renewed investor interest. According to Bank of America, tech stock inflows last week reached their highest levels since June 2024, as quoted on Yahoo Finance.

NVIDIA-Heavy ETFs in Focus  

Investors seeking to capitalize on the growth story could consider investing in ETFs with the largest allocation to the AI chipmaker. These include Strive U.S. Semiconductor ETF SHOC, VanEck Vectors Semiconductor ETF SMH, VanEck Fabless Semiconductor ETF SMHX, YieldMax Target 12 Semiconductor Option Income ETF SOXY and Columbia Semiconductor and Technology ETF SEMI.

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This article originally published on Zacks Investment Research (zacks.com).

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