Nvidia Stock Investors Just Got Fantastic News from Wall Street
Nvidia's stock has seen significant volatility but Wall Street analysts are increasingly bullish. Price targets have been raised by multiple analysts, with potential gains ranging from 22% to 55%. Analysts cite strong demand for Nvidia's AI chips and a backlog of orders exceeding $1 trillion. Predictions suggest Nvidia could generate $588 billion in revenue over the next two years, indicating potential for substantial stock returns. Currently, Nvidia trades at 32 times earnings, considered a bargain given its expected growth.
Nvidia (NVDA 4.39%) has had a stellar run over the past few years, but those gains have been marked by significant volatility. The artificial intelligence (AI) chipmaker has gained 1,440% since the start of 2023 (as of this writing), but has fallen 10% or more on at least five occasions. Furthermore, in early 2025, the stock plunged 37%, so it isn't for the faint of heart.
Some investors have been avoiding the stock, citing fears of weakening AI adoption, an AI bubble, or so-called circular deals in the space. However, Wall Street is increasingly convinced Nvidia's growth story is very much intact.
Image source: Nvidia.
Wall Street thinks Nvidia is a buy
Over the past week, several of Wall Street's finest have become increasingly bullish on Nvidia, and there's a recurring theme.
TD Cowen analyst Joshua Buchalter raised his price target on Nvidia to $275 from $235, while maintaining a buy rating on the stock. That represents potential gains of 22% for investors compared to Friday's closing price. The analyst cited rising capital expenditures by hyperscale cloud computing operators and orders for the company's Blackwell and Rubin chips, which management says exceed $1 trillion. Buchalter expects a beat-and-raise quarter when Nvidia reports earnings next week.
There's more. Cantor Fitzgerald analyst C.J. Muse raised his price target on Nvidia to $350 from $300, and maintained an overweight (buy) rating on the stock. That represents potential upside of 55%. The analyst believes Nvidia's AI chips are sold out for 2026, with a strong backlog for 2027 and 2028. While analysts' consensus estimates expect earnings per share of $8.28 over the coming year, Muse believes EPS in a range of $15 to $16 is more likely.
UBS analyst Timothy Arcuri increased his price target to $275 from $245 while maintaining a buy rating, suggesting potential upside of 22%. The analyst cites conservative estimates ahead of Nvidia's financial report and expects a beat-and-raise quarter.
Susquehanna analyst Christopher Rolland also increased his price target on Nvidia to $275, up from $250, while maintaining a buy rating, suggesting potential gains of 22%. The analyst cited the company's visibility into $1 trillion in Blackwell and Rubin sales (sound familiar?). He went on to say Nvidia has "one of the largest opportunity sets ahead," which Wall Street continues to underestimate.
Wells Fargo analyst Aaron Rakers raised his price target on Nvidia to $315 from $265, while maintaining an overweight (buy) rating. That represents potential gains of 40% for investors. The analyst believes that AI compute demand will continue to outstrip supply, driving Nvidia's data center revenue above Wall Street's expectations.
There were more, but you get the point. It's worth noting that all of these price target increases have happened within the past week.
NASDAQ: NVDA
Key Data Points
Is Wall Street right?
The recurring theme among these analyst notes is that investors are underestimating Nvidia's potential over the coming year, and I think they're finally catching on.
I recently argued that investors should be paying more attention to CEO Jensen Huang's statement that the company has "high confidence, high confidence visibility of $1 trillion plus of Blackwell and Rubin, not anything else, just Blackwell and Rubin."
Wall Street is finally coming around to the magnitude of that pronouncement and what it will mean for Nvidia's future results. Furthermore, given the company's tendency to underpromise and overdeliver, the potential is bigger than many imagine.
Wall Street is currently predicting that Nvidia will generate revenue of $216 billion in 2026 and $373 billion in 2027, for a total of $588 billion over two years. If Huang's estimate is accurate and Nvidia's backlog generates more than $1 trillion in sales over the next two years, Wall Street's estimates are far too low, and the stock will likely deliver triple-digit returns during that time.
Nvidia is selling for 32 times earnings and 20 times forward earnings (as of this writing). That's a bargain for a company that's expected to generate high double-digit revenue and profit growth over the next two years.
