25% upside, Nvidia stock (NVDA) has rocketed to all-time highs

Key points:

Nvidia is preparing to launch its next-generation Blackwell GPU chip, which could drive further stock gains.

Melius Research likened selling Nvidia stock now to selling Apple shares after the debut of the first iPhone, suggesting it would be an untimely move.

According to Melius, Nvidia's stock remains attractive from a valuation standpoint, especially when compared to its industry peers.

Nvidia Poised for Further Gains with Blackwell GPU Launch

Nvidia stock has surged to all-time highs, but investors are advised to hold onto their shares a bit longer, as the upcoming launch of its next-gen Blackwell GPU could be a pivotal moment for the company, according to a note from Melius Research this week.

Ben Reitzes, a managing director at Melius, raised his price target for Nvidia to $185, signaling a potential upside of 26% from current levels.

Reitzes compared Nvidia’s current position to Apple’s launch of the first iPhone, suggesting that selling Nvidia stock now would be like selling Apple shares right after its initial iPhone release. “It’s akin to the excitement around Apple’s iPhone product cycles 15 years ago, just on a larger scale. So, as odd as it may sound, giving up on Nvidia after its success with Hopper is like abandoning Apple after the first or second iPhone,” Reitzes explained.

Nvidia Soars 800% Since ChatGPT Launch

Nvidia's stock has skyrocketed nearly 800% since the release of OpenAI's ChatGPT in November 2022, making it the largest company in the world with a market cap exceeding $3.5 trillion. The company's Hopper and upcoming Blackwell GPUs are central to driving advancements in artificial intelligence, powering everything from AI chatbots to self-driving cars.

Melius Research analyst Ben Reitzes remains bullish on Nvidia, highlighting the company's strong position in the AI space. "Big clouds, sovereigns, and large enterprises are still likely to invest heavily in this 'once-in-a-lifetime opportunity,'" he noted.

Looking ahead, Reitzes is optimistic about Nvidia's future prospects, including potential revenue growth through 2027, driven by higher gross margins and sustained investment from cloud hyperscalers. He raised his earnings and revenue forecasts, projecting Nvidia could generate over $5 per share in profits by 2027.

Even with a decelerating growth rate, Nvidia remains attractive from a valuation perspective, with a 2025 PEG ratio of 0.8x—33% lower than Broadcom’s and the lowest among the "Mag 7" tech stocks. Nvidia's stock has surged 197% year-to-date and is trading just 2% below its all-time high of $149.77 per share.

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