Nvidia (NVDA) shares hit a new all-time high last week amid an AI stock surge, and investors are bullish that the climb will continue. The stock has slid a bit on Monday, but that hasn’t deterred analysts from raising their forecasts for NVDA. Currently trading around $157, analysts still see the stock rising further, perhaps another 20% before the summer is over.

While Nvidia and other Magnificent seven stocks are reaching new peaks, they’ve been outperformed by other AI names like Palantir, Vistra, and also Dell. Christine Short from Wall Street Horizon has raised concerns about competition from Chinese AI companies, highlighting potential AI market risks that could challenge the current AI trade dominance. However, other analysts suggest that the competition is healthy, and Nvidia has enough going on to maintain investor interest.

The current Nvidia NVDA rally has seen the stock surge approximately 60% since April’s low, and this impressive performance tells only part of the story. In contrast, AI stock performance across the Magnificent Seven stocks has lagged behind other AI-related companies, with most Mag 7 names posting gains of just 25-30% compared to stronger performers in the AI space.

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Furthermore, Nvidia’s latest quarter was a blowout performance. Revenue surged a better-than-expected 65% for its fiscal first quarter, fueled by a 73% jump in its data center revenue. All but 12% of its revenue is now coming from that business. Demand for the buildout of data centers remains strong as AI’s hunger for computing power intensifies. With Nvidia heading this sector and demand still high, NVDA may continue its rally throughout this summer.

Last Wednesday, Loop Capital analyst Ananda Baruah raised his price target on Nvidia stock to $250, the highest of Wall Street analysts tracked by Yahoo Finance. The new price target suggests Nvidia’s market cap could soar to $6 trillion from its current $3.6 trillion level. “While it may seem fantastic that NVDA fundamentals can continue to amplify from current levels, we remind folks that NVDA remains essentially a monopoly for critical tech, and that it has pricing (and margin) power,” Baruah wrote in a note to investors. Loop Capital also projected the AI chip demand market growing to $2 trillion by 2028, which spearheads the bullish outlook for Nvidia stock and the broader semiconductor growth trend that’s been accelerating across various major industry sectors.