Nvidia, one of the "Magnificent Seven" stocks driving the AI revolution, has experienced exceptional growth in the past year. The company's stock has skyrocketed by nearly 260% and added a trillion dollars of market cap in less than 12 months. Nvidia manufactures graphics processing units (GPU) used in various AI applications, including accelerated computing and machine learning. The demand for their flagship chips, the A100 and H100, continues to surge.

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Despite its impressive growth, Nvidia's financial performance suggests that the company could still have room for further expansion. In fiscal 2024, Nvidia generated $60.9 billion in revenue, a remarkable 126% increase compared to the previous year. The company's gross margin also expanded to 72.7%, indicating increased profitability. Furthermore, Nvidia's free cash flow surged sixfold year over year, reaching $27 billion.

Nvidia's growth prospects are bolstered by several potential catalysts. The company recently invested in voice-recognition software company SoundHound AI, signaling its interest in AI-powered voice assistants. This move aligns Nvidia with other major tech companies such as Apple, Microsoft, Amazon, and Alphabet, who have also invested significantly in voice recognition technology. Additionally, Nvidia is expanding into the enterprise software business, which typically carries higher profit margins than hardware development.

Wall Street analysts anticipate continued growth for Nvidia, with revenue estimated to increase by approximately 78% this year. Nvidia's position in the data center infrastructure market, combined with its expanding software business and increasing number of AI applications, suggests substantial upside potential for the company. Analysts have set a price target of $1,400 for Nvidia stock, implying around 60% upside from its current trading levels.