Elizabeth H. Volk

Thu, Jun 26, 2025, 8:39 AM3 min read

Semiconductor giant Nvidia (NVDA) has solidified its position as the world's most valuable company, achieving a market capitalization of $3.77 trillion - and surpassing its “Magnificent 7” counterparts Microsoft (MSFT) and Apple (AAPL) in the process. In fact, NVDA stock reached a new record high of $156.71 earlier today, representing a remarkable recovery of over 80% from its April 2025 year-to-date lows.

In the month of June alone, NVDA has gained a staggering 15.16% - easily outstripping its average return of 1.31% for the month since 2010. This is currently Nvidia’s best monthly performance for the month of June since 2021 - though it should be noted that this kind of double-digit return is roughly on par for the artificial intelligence (AI) chip leader over the last half-decade or so.

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Looking ahead, Nvidia isn’t expected to report quarterly earnings until late August, and the stock has averaged a positive return of 3.03% in July dating back to 2010. However, last year’s 5.28% July selloff was a notable divergence from historical averages - and like most multinational market momentum leaders, NVDA is influenced by a number of significant factors beyond seasonal trends.

A bullish note from Loop Capital this week set a new Street-high $250 price target, underscoring growing confidence in NVIDIA's AI dominance and suggesting potential growth to a $6 trillion valuation. So, should investors buy into Nvidia’s strength - or wait for a pullback in the outperforming stock?

The chip company's Q1 2025 performance was exceptional, with revenue surging 69% year-over-year to $44.1 billion, including $35.6 billion from data centers. Nvidia's technological leadership remains unchallenged, with nearly 100 Nvidia-powered AI factories now in progress, double the number from the previous year.

The company maintains an aggressive innovation pipeline, planning annual chip architecture releases including Blackwell Ultra (2025), Vera Rubin (2026), and Vera Rubin Ultra (2027). Their GPU technology continues to be the backbone of most AI products, supported by their proprietary CUDA software platform, which creates strong vendor lock-in.