Nvidia Wants to Help Bring Data Centers to Space. Should You Bet on NVDA Stock Now for Out-of-This-World AI?

Nvidia (NVDA) has always been at the forefront of innovation. Since inception, the tech giant has invested $58.2 billion in research and development. As of fiscal 2025, the company also had 27,100 out of 36,000 total employees engaged in R&D. Therefore, unsurprisingly, Nvidia is not only strengthening its moat but also pushing new frontiers.

At GTC 2026, Nvidia recently announced the Vera Rubin Space-1 chip system, which could potentially be used for orbital AI data centers. To simplify things, the current massive push for AI infrastructure also implies significant energy consumption and higher electricity costs. One potential solution to this problem is the creation of orbital data centers in space. 

It’s worth noting that SpaceX is already planning orbital data centers. Elon Musk believes that “within 2 to 3 years, the lowest cost way to generate AI compute will be in space.” With SpaceX being among Nvidia’s largest customers, the Vera Rubin Space-1 chip could be a game changer.

About Nvidia Stock

Headquartered in Santa Clara, California, Nvidia identifies itself as the pioneer in accelerated computing. With AI changing the technology landscape, Nvidia has positioned itself as a full-stack computing infrastructure company with capabilities for data center-scale offerings. 

Nvidia operates through two primary segments: Compute & Networking and Graphics. Some of the key markets that serve as growth drivers for the company include data centers, gaming, professional visualization, and automotive. 

For fiscal 2026, Nvidia reported robust revenue growth of 65% year-over-year (YOY) to $215.9 million. For the same period, operating cash flow was $102.7 billion. The strong growth momentum is likely to sustain in fiscal 2027, with Nvidia guiding for Q1 revenue of $78 billion and a gross margin of 75%. 

Amid healthy growth and continued innovation, NVDA stock has trended higher by 49% over the past 52 weeks. However, shares are down by less than 1% for the past six months and down by 5% year-to-date (YTD). This phase of consolidation seems like a good accumulation opportunity.

Product Launches Will Continue to Boost Growth

In terms of new products, Nvidia recently launched the Vera CPU built for agentic AI. The Vera CPU is touted to deliver “twice the efficiency” and is 50% faster than traditional CPUs. With a release scheduled for the second half of 2026, it’s one of the growth drivers for Nvidia. 

Further, with the launch of OpenClaw, Nvidia is likely to make inroads beyond the hardware market. According to Kevin Xu of Interconnected Capital, Nvidia is positioning OpenClaw “as the next Windows” or “as the next Linux.” According to Nvidia CEO Jensen Huang, OpenClaw is “definitely the next ChatGPT.” 

With continued expansion of its addressable market and significant growth visibility from data centers, Nvidia is well positioned to create value on a sustained basis. 

What Do Analysts Say About NVDA Stock?

Based on 49 analysts with coverage, NVDA stock is a consensus “Strong Buy.” While 44 analysts have a “Strong Buy” rating for Nvidia, three analysts have a “Moderate Buy” rating, one analyst has a “Hold” rating, and one has a “Strong Sell” rating. 

The mean price target of $266.59 implies potential upside of about 52% from here. Further, the most bullish price target of $360 suggests that NVDA stock could climb 105% from current levels.

After Nvidia’s annual tech event, Bernstein maintained an “Outperform” rating on NVDA with a price target of $300. The bullish outlook is underscored by the view that Nvidia will continue to strengthen its position in AI inference. Further, the company has guided for a $1 trillion revenue opportunity through 2027 that includes only Blackwell, Rubin, and associated networking, implying that Nvidia's actual revenue potential is therefore higher. 

The icing on the cake? NVDA stock trades at a PEG ratio of 0.61, which is indicative of undervaluation considering the growth potential.