Nvidia Stock Hits New Intraday High, Boosts Chip Stocks

Nvidia stock has reached a new all-time intraday high of $172.26, a 4.99% increase from the opening price. If the trend continues, it will mark a new record close. This has lifted most chip stocks, as the company's success in the gaming and AI sectors drives demand for its products.

Nvidia Corporation's (NVDA) stock reached a new intraday high of $172.26 on July 2, 2025, marking a 4.99% increase from its opening price. If the trend continues, this could set a new record close for the company. This significant rise has had a positive impact on most chip stocks, as Nvidia's success in the gaming and artificial intelligence (AI) sectors drives demand for its products [1].

The stock's performance was buoyed by several factors. First, Nvidia announced plans to resume sales of its AI chips to China, one of its most important markets, after receiving assurances from the U.S. government that it will be granted approval. This reversal in the Trump administration's earlier stance on export curbs helped lift shares of chip stocks across the board [1].

Additionally, Nvidia's market capitalization reached a historic milestone of $4 trillion, driven by investor optimism in the AI sector. Analysts predict an average price target of $178.32, implying an 8.12% upside from the current market price. GuruFocus estimates the GF Value at $280.31 in one year, suggesting a 69.97% upside potential. Analysts maintain a positive outlook, with a consensus recommendation of 1.8, denoting an "Outperform" status [2].

Despite the impressive growth, Nvidia's stock is currently rated as a "Hold" by the Zacks Rank system, which considers recent modifications to analyst estimates. The company's Forward P/E ratio of 37.07 is a discount compared to the average Forward P/E of 38.86 in its industry. Additionally, Nvidia's PEG ratio of 1.31 is lower than the average PEG ratio of 2.72 for the Semiconductor - General industry [2].

KeyBanc Capital Markets analysts see Nvidia in a favorable position ahead of its earnings report, expected on August 27, 2025. They expect upbeat guidance of $53.5 billion, versus the $51.8 billion consensus on FactSet. The analysts noted that Nvidia's Blackwell AI platform and its next-generation chips, such as the Blackwell Ultra, are driving demand and high expectations [3].

The positive sentiment around Nvidia is not just limited to its AI chips. The company's success in the gaming sector, particularly with its GeForce GPUs, also contributes to its overall stock performance. As the demand for AI and gaming continues to grow, investors will be closely watching Nvidia's earnings reports and stock performance.

References:
[1] https://finance.yahoo.com/news/live/stock-market-today-dow-slides-after-cpi-inflation-accelerates-nvidias-surge-lifts-nasdaq-to-record-200955051.html
[2] https://www.ainvest.com/news/nvidia-surpasses-4-trillion-market-cap-ai-optimism-2507/
[3] https://www.morningstar.com/news/marketwatch/20250714115/why-nvidia-and-these-other-chip-stocks-could-be-standouts-this-earnings-season