Strong demand for AI prompts analysts to predict Nvidia ( NVDA , Financial ) on the bull ride to around $150 in the first week of 2025 . However, the stock made some corrections lately, closing on Friday at $138 higher for the day and quicker for the week.

Nvidia's record revenue in Q3 2025 was $35.1 billion , up 17% from the prior quarter and 94% year over year. The segment, Data Center, contributed $30.8 billion, a sequential growth of 17% and an annual growth of 112%.

Despite the good indications, some analysts are less confident. D.A. Davidson's Gil Luria rates the stock as "neutral" on fears of potential supply-side disruptions and competitive threats to customer-developed chips. He also says that switching to smaller language models would lessen the need for Nvidia's GPUs.

While price targets range from $171 to $220 on Wall Street, there's hardly any doubt that Nvidia is essential in AI and other advanced technologies. Some experts, however, see Nvidia's market cap topping $10 trillion because of its innovations and strong market presence, including Sahy Boloor.

Investors watching closely Nvidias path to growth as it moves through the phases of its impact on transformative technology powered by AI.

This article first appeared on GuruFocus .