Nvidia’s AI Dominance Could Have Further to Run

Nvidia’s AI Dominance Could Have Further to Run NVIDIA just posted another blowout quarter yet the stock sits 11% below its 52-week high, and that gap between fundamentals and price may be exactly the opening bulls have been waiting for. The 24/7 Wall St. price target for NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) is $259.77 over the next 12 months. The stock trades at $216.20, so the target means 20.26% upside. Our model rates the stock a buy with high confidence. 24/7 Wall St. Price Target Summary Confidence is rated that high because NVIDIA keeps beating estimates and growing faster than the market expects. The recent break in the stock looks like consolidation within an healthy growth story. A Pullback That Ignores Another Record Quarter NVIDIA slipped 0.41% over the past week and 3.94% over the past month. It is up 16.2% year to date. Shares sit about 11% below the 52-week high of $243.37 and 32% above the low of $163.90. Barron’s says mixed big-tech earnings are weighing on the stock. Meanwhile, Meta Platforms (NASDAQ:META) is funding its AI buildout, and NVIDIA and Advanced Micro Devices (NASDAQ:AMD) are reportedly taking a piece of Meta’s new stock offering. The last report tells a stronger story. Fiscal Q2 2027 revenue reached $96.22B, up 105.8% and ahead of the $92.07B consensus. Non-GAAP EPS of $2.22 exceeded the $2.09 estimate. Q3 guidance calls for $108B in revenue. Why Bulls See $270 and Beyond Management expects fiscal 2028 revenue to grow approximately 70%, and it calls that a supply-constrained outlook. The chief executive said “The unconstrained number would be a lot higher.” Vera Rubin increases NVIDIA’s revenue opportunity to $40 billion per gigawatt, up from $25 billion for Blackwell. Spending by the top five hyperscalers is expected to approach $1.3 trillion in 2027, and all of that capex has to be powered, cooled and networked by somebody (we rounded up seven suppliers riding that same expansion in a free report on AI infrastructure stocks). Wall Street agrees: 59 analysts rate the stock Buy or Strong Buy, and the consensus target is $328.95. A bull-case estimate puts the stock at $270.57. Margin Pressure and Financing Risk Bears Will Flag Gross margins are expected to bottom at 71% to 72% in Q4 as memory costs rise. Supply commitments rose to $279B, and DSO extended to 60 days from 45. Guidance assumes no China data center compute revenue. Some critics also call NVIDIA’s AI lab investments circular financing. Bulls would answer that price increases should raises fiscal 2028 margins back to 72% to 73%, and that most of the inventory build is aimed at the Vera Rubin launch. Even a bear-case estimate of $226.09 sits above today’s price. Is NVIDIA Cheaper Than AMD and Broadcom? AMD competes head-on in GPUs, and its Data Center revenue rose 107%. Even so, it trades at a higher multiple than NVIDIA while growing more slowly. Broadcom (NASDAQ:AVGO) is the custom-silicon challenger, with AI revenue up 221%. It trades at a lower multiple, but its revenue base is far smaller. Set against these two, the 24/7 Wall St. price target looks reasonable. Why Our Model Treats This Pullback as an Opening Our 24/7 Wall St. price target of $259.77 comes with a buy rating and 90% confidence. What tips the scale is supply: NVIDIA is limited only by how much it can build, since customer demand tops supply. The bull case strengthens if Vera Rubin ramps as planned and margins recover in fiscal 2028. The thesis weakens if hyperscaler spending slows or memory costs keep pressuring margins past Q4. For now, the numbers favor the bulls. NVIDIA Price Prediction 2026-2030 These estimates assume NVIDIA keeps executing on its current strategy. Export controls, competition from custom chips or a slowdown in AI spending could push results well above or below these figures. Contact [email protected] for any questions or corrections.