Wall Street Sees Nvidia Stock Hitting $324. Here’s Why NVDA Could Go Even Higher.

Nvidia (NVDA) has been putting up strong financial results quarter after quarter, and the ongoing artificial intelligence (AI) boom is a big reason why. With spending on AI infrastructure growing, it is creating strong demand for Nvidia’s chips and technology.

While Nvidia has delivered solid financial numbers, there are plenty of reasons to believe that demand could remain strong for its products. Nvidia continues to expand into a massive, growing market, and its strong product lineup gives it a solid position in the AI ecosystem. At the same time, major cloud companies and hyperscalers are ramping up capital spending, much of which is going toward AI infrastructure.

Interestingly, Nvidia shares haven’t delivered the kind of eye-popping returns that some of its peers have so far this year, despite the company’s strong business performance. Further, its stock is trading at a discount to its peers. That leaves room for the stock to catch up, as its revenue growth and earnings continue to exceed expectations.

Wall Street appears optimistic. Analysts’ average 12-month price target of about $324.44 for Nvidia stock suggests about 47% upside from current levels.

But that may not be the ceiling. If AI demand continues to accelerate and hyperscalers keep increasing infrastructure spending, NVDA could have plenty of room to outperform even current analyst expectations.

Revenue and Earnings to Keep Soaring

Nvidia continues to deliver exceptional growth. After reporting 85% year-over-year (YoY) revenue growth in the first quarter of fiscal 2027, the company more than doubled revenue in the second quarter. Nvidia generated $96.2 billion in Q2 revenue, up 18% sequentially and 106% from the same period last year.

For the third quarter, Nvidia expects revenue of roughly $108 billion, still representing more than 89% YoY growth. However, given strong demand for AI infrastructure, the company could outperform its own guidance.

Nvidia’s revenue could potentially double in fiscal 2027, while management expects roughly 70% growth in fiscal 2028. Notably, that forecast assumes ongoing supply constraints. If Nvidia can meet more customer demand, actual growth could be significantly higher.

The data center business remains the primary growth engine. Revenue reached $89 billion in Q2, up 18% sequentially, driven by continued demand for Nvidia’s Blackwell platform from hyperscalers, as well as solid demand from neocloud providers, AI startups, and sovereign customers. Nvidia’s full-stack AI platform is also expanding the revenue opportunity by allowing the company to capture more value across the AI infrastructure stack.

Looking ahead, Nvidia has begun shipping Vera Rubin systems in production and has already received orders from major hyperscalers, AI cloud providers, and system manufacturers. With demand remaining strong, Vera Rubin could become the company’s fastest product launch ever.

Nvidia’s networking business is gaining momentum as well. Networking revenue reached another record, rising 18% sequentially, while Spectrum-X Ethernet revenue increased 2.6 times from a year ago.

The growing adoption of agentic AI is also creating an opportunity in data center CPUs. Nvidia’s Grace CPU has already generated more than $5 billion in trailing-12-month revenue, and the company estimates the overall server CPU market at roughly $20 billion annually. Nvidia expects CPU revenue to more than double in fiscal 2028.

With revenue expanding rapidly, earnings should follow. Analysts expect Nvidia’s bottom line to nearly double in fiscal 2027, followed by more than 62% earnings growth in fiscal 2028. Given strong demand and the potential for improved supply, these estimates could prove conservative.

Nvidia Is Trading Cheaper Than Peers

While Nvidia’s top and bottom lines could keep soaring, its valuation remains surprisingly low. It trades at 25.6 times forward earnings, a multiple that appears low given the company’s solid growth profile.

Nvidia's stock also trades at a discount to its peers. Advanced Micro Devices (AMD) trades at approximately 74 times forward earnings, while Intel commands a forward price-to-earnings (P/E) multiple of 91.7 times.

NVDA Stock Is to Surge Higher

Nvidia’s growth story still looks far from over. Strong AI demand, rising data center spending, and new products such as Vera Rubin give the company several ways to keep growing in the years ahead. At the same time, the stock looks cheap given the pace of Nvidia’s earnings growth. Further, most analysts continue to recommend a “Strong Buy” for NVDA stock.

Of course, Nvidia still faces risks, including high expectations and supply constraints. But for now, the fundamentals remain strong. With Nvidia continuing to deliver strong growth, the average Wall Street target of $324.44 could prove conservative, leaving room for NVDA stock to climb even higher.