Nvidia's meteoric rise in the stock market continues to astound investors and analysts alike. Fueled by its dominance in the artificial intelligence (AI) chip market, the company's market capitalization has already reached staggering heights, prompting speculation about just how high it can go. Cantor Fitzgerald recently lifted its price target for Nvidia to $240, a move that has sparked discussions about the potential for the AI superstar to eclipse the entire Indian equity market.
Nvidia's current market cap is around $4.3 trillion, a figure that already surpasses the stock markets of the United Kingdom, China, and Canada. If Cantor Fitzgerald's target price is met, Nvidia's market cap could reach approximately $5.9 trillion. This would be a truly remarkable feat, potentially exceeding the total market capitalization of all listed companies on Indian stock exchanges, which currently stands at approximately Rs 5.21 trillion. In July 2025, Nvidia's market cap was nearing India's total GDP, and some reports indicated that a modest increase in Nvidia's share price would elevate its market value beyond the total GDP of India.
Several factors are contributing to the bullish sentiment surrounding Nvidia. The company's revenue rose 69% to $44 billion in the most recently reported quarter. Moreover, Nvidia is likely to benefit from stronger-than-expected investments by major cloud computing companies in the U.S. Firms like Amazon, Microsoft, Meta Platforms, and Alphabet are on track to spend $364 billion in capital expenditures in 2025.
Analysts are increasingly optimistic about Nvidia's prospects, with nearly 90% of those covering the stock rating it as a buy-equivalent. UBS reiterated its buy rating and boosted its price target to $205 from $175, noting its growing confidence in the stock ahead of earnings. Loop Capital has a Street-high price target of $250 on Nvidia stock, representing potential upside of 42%, which would push Nvidia's market cap to $6.1 trillion over the coming 12 to 18 months.
However, some voices urge caution. The AI sector may be in a bubble, and investors may be "overexcited" about AI prospects. It is hard to imagine a company in which the stock will crater if its quarterly revenue is up less than 70% year over year, but Nvidia carries the expectations of that level of growth. Morningstar analysts consider Nvidia's stock fairly valued compared with their long-term fair value estimate of $170 per share.
Nvidia's financial health is outstanding. As of April 2025, the company held $53.7 billion in cash and investments, compared with $8.5 billion in short-term and long-term debt. Semiconductor firms tend to hold large cash balances to help them navigate the cycles of the chip industry.
Despite the potential risks, Nvidia's dominance in the AI chip market, coupled with strong demand from data centers and cloud computing providers, suggests that the company is well-positioned for continued growth. Whether it will ultimately eclipse the entire Indian market cap remains to be seen, but the possibility highlights the extraordinary value that the market is placing on Nvidia's position at the forefront of the AI revolution.
