Strategic advisory firm Constellation Research gave Nvidia stock a $200 price target in June this year. The firm points out that the semiconductor bellwether enjoys several advantages that could send its shares to $200 in the coming year and even help it sustain its rally for a longer period.

It’s Fed decision day—and it'll be difficult for the chip maker's shares to make gains until investors have more clarity about the central bank's next move.

On Wednesday, the Federal Reserve trimmed interest rates aggressively and penciled in further rate cuts by the end of the year. It slashed the benchmark interest rate by a half-point to 4.75-5% for the first time since March 2020.