Nvidia Corporation’s remarkable ascent in the stock market shows no signs of abating, as shares have surged over 200% in the past year. This extraordinary growth has prompted Rosenblatt Securities analyst Hans Mosesmann to raise his price target on the semiconductor titan to a Wall Street high of $200, projecting a market valuation approaching $5 trillion by 2025.

Nvidia’s stock has seen a meteoric rise, climbing more than 200% in the past year, a trend that Mosesmann believes will continue, potentially pushing the company’s valuation to nearly $5 trillion. This bullish outlook comes on the heels of Nvidia’s recent 10-for-1 stock split on June 10, which has further invigorated investor interest. Nvidia’s stock rose by 2.7% on Tuesday, reaching new intraday highs and reflecting robust market confidence in its growth trajectory.

The Santa Clara-based company has solidified its dominance in the market with its cutting-edge products that are essential for powering data centers engaged in complex artificial intelligence (AI) computing tasks. This dominance is bolstered by a strategic focus on not just hardware but also the accompanying software, which Mosesmann highlights as a key driver of future valuation. “The real narrative lies in the software that complements all the hardware goodness,” Mosesmann wrote, emphasizing the significant potential of Nvidia’s software offerings in the next decade.

Mosesmann, who has maintained a buy rating on Nvidia since he began covering the stock in 2017, believes that the integration of software with Nvidia’s hardware will considerably enhance the company’s revenue mix. This integration is expected to contribute to a more sustainable growth model, with an upward bias to the company’s overall valuation. His optimistic forecast is echoed by the broader analyst community, where Nvidia enjoys substantial support with 64 buy ratings, seven holds, and a single sell rating, according to Bloomberg data.

Nvidia’s shares have skyrocketed 165% in 2024 alone, adding over $2 trillion to its market capitalization. This growth threatens to dethrone Microsoft and Apple, positioning Nvidia to potentially become the world’s most valuable company. As the company continues to innovate and expand its AI and data center capabilities, analysts and investors alike are closely watching Nvidia’s next moves, anticipating further value creation.

For more insights into Nvidia’s rally and future projections, read the full story on Fortune.