Robinhood Price Forecast: Can HOOD Reach $130 After Its AI and Crypto Push?

Robinhood officially announces the public mainnet of Robinhood Chain, a Layer 2 blockchain running on top of Arbitrum targeted at tokenized real-world assets.

The ecosystem already includes several high-profile partners. Uniswap is rolling out a dedicated liquidity protocol, BitGo is offering custody integration and Chainlink and Alchemy are delivering critical infrastructure services.

It's a major paradigm change for investors. Robinhood is transitioning from a platform exclusively for trading cryptocurrencies toward a part of the infrastructure that will fuel the next generation of decentralized finance. That would be a business with higher margins and greater long-term network effects, something that other competitors like Coinbase have been trying to achieve.

In parallel with the blockchain launch, Robinhood released Stock Tokens via its self-custody Wallet app to over 120 countries.

Eligible users can now trade tokenized U.S. stocks at any time and utilize them for collateral in DeFi lending protocols. The move dramatically increases Robinhood's addressable market beyond its traditional U.S. brokerage customers and introduces new international users who were unable to access U.S. equities.

Availability alone won't determine success, however. Investors will need to watch closely over the next few quarters to determine if these products translate into actual revenue growth, as well as in terms of user adoption and trading volume.

Based on the conversation with CNBC, the CEO, Vlad Tenev, believes that AI agents will eventually be as capable as human traders, and Robinhood is getting ready for that.

The company plans to expand the Agentic Trading tools it introduced for stocks and options in May into crypto markets as well. Eligible users can use Robinhood's Trading MCP to integrate their preferred AI models and let them handle trading strategies for them, but with complete control over position size, capital allocation, and risk limits.

The long-term vision is for retail investors to have access to the same computational power that institutional trading firms have long enjoyed," Tenev said. Over the short term, each new AI-based trading functionality could boost engagement and transaction counts, which will directly contribute to Robinhood's trading revenue.

Robinhood also is expanding its international product lineup.

The company has started to offer commodity, ETF and foreign exchange perpetual futures to Europe with up to 10x leverage for gold, silver, oil and major currency pairs. Previously, perpetual futures on the platform were limited largely to cryptocurrencies.

Robinhood also announced plans to offer trading on cryptocurrencies in the United Kingdom as it continues to expand its services in 38 countries and has customers count over 28 million.

These programs represent one of Robinhood's fastest-growing overseas businesses, and perpetual futures have already seen considerable success since their launch in Europe last year.

The product announcements prompted another round of analyst upgrades.

For the platform, Mizuho raised its price target to $130 from $115 and said it remains Outperform on the stock, noting that it resembles a type of infrastructure business like Amazon Web Services or Microsoft Azure.

Piper Sandler reiterated its Overweight rating and $135 target following record trading volume on both the equities and options and event contract trading.

BTIG affirmed its Buy rating and $125 price estimate on the news, saying it is further proof that Robinhood's product momentum continues to be positive.

Barclays also reaffirmed its Overweight rating following the crypto event, while Truist stayed more conservative with a Buy rating and a $100 target.

The varying price estimates show that there's a variety of opinions out there on what portion of Robinhood's momentum has been priced in, which is another reason for investors not to simply buy the runaway train.

Analyst estimates currently range from $100 to $135, with Piper Sandler at the top and Truist at the bottom. Despite that, most targets remain in play for further gains around the $111 level.

Image Source: TipRanks

The next catalyst is coming on July 4, when Robinhood starts its work as the sole initial broker and trustee for the Trump Accounts program. Approximately 60 million children are eligible for the program, and management estimates that about 5.5 million have already signed up, providing investors with yet another thing to watch for as the program unfolds.

Going forward, focus will now be on second-quarter earnings. Investors will be looking for confirmation that the record trading activity analysts have highlighted translates into revenue growth beyond the 41.5% pace reported previously.

Robinhood Price Chart - Source: Tradingview

Robinhood (NASDAQ: HOOD) has reclaimed $111.90 after bouncing off the support zone on the 4 hour chart. It managed to hold the uptrending trendline as it continues to make higher highs and higher lows within a channel. This shows that buyers are regaining control and the pull back has ended for now.

The current resistance area of support from $108 to $109 has been broken on a bullish way following a breakout this week. Robinhood shares are now expected to rally as long as it does not lose the $108 to $109 support area. The resistance area is expected to see a test of price at $118.70 and $126.30 and if broken it could lead to a rally towards $133. If it breaks out below $100 then it signals that the stock is losing momentum and there are chances of another pull back towards $91 to $99 zone.

On the upside momentum is also supportive as the RSI is showing at 68.3, which is near to overbought, but without divergence.

Robinhood continues to bolster its investment thesis with a number of product launches, including Robinhood Chain, tokenized US stocks, artificial intelligence-driven trading, and an expansion of its European derivatives business. This should allow Robinhood to be less reliant on brokerage and more reliant on a range of sources of revenue streams that will generate sustainable revenue growth in the long run. 

Analyst price targets are optimistic, in the range of $100 to $135. The next major catalysts are Trump Accounts and Q2 results, which will be a major indicator if trading volumes and product usage increase. Technically, Robinhood stock is holding an uptrend and should continue above $108 to $109 support. The next target is at $118.70 and $126.30, which, if broken, would push it towards $133.