Jensen Huang Says the ‘Inference Inflection’ Is Here. Should You Buy Nvidia Stock Now to Profit?

Shares of Nvidia (NVDA) have been sideways in 2026 despite a flurry of positive news. However, with the recent GPU Technology Conference (GTC) providing further clarity on growth and product innovation, NVDA stock still seems attractive. 

To put things in perspective, Nvidia CEO Jensen Huang talked about $500 billion in GPU demand last year for Blackwell and Rubin. One year down the line, Huang believes that the demand is likely to swell to $1 trillion through 2027. 

On top of this, Huang believes “inference inflection” has been reached. To elaborate, whenever AI has to undertake a task, it has to use inference and tokens. Inference chips are therefore critical to producing responses. As Nvidia expands further into inference hardware for the AI era, the growth potential is significant. 

About Nvidia Stock

Headquartered in Santa Clara, California, Nvidia is a data center-scale AI infrastructure company. With a market valuation of $4.2 trillion, the technology giant has been leading the sector rally backed by the AI boom. 

For fiscal 2026, Nvidia reported robust revenue growth of 65% year-over-year (YOY) to $215.9 billion. The data center segment was the key growth and cash flow driver. It’s also worth noting that data center revenue has also reportedly increased by 13x since the emergence of ChatGPT. This puts Nvidia’s strong moat and dominance into persepctive. For fiscal 2026, operating cash flow was $102.7 billion, providing flexibility for share repurchases and investments in innovation. 

While Nvidia has reported strong results and GTC 2026 provided catalysts for sustained growth, NVDA stock has remained sideways in the last six months, down by less than 1%. This presents investors with a good opportunity to accumulate a stock trading at a PEG ratio of less than 1.0. 

Innovation Continues

The backbone of growth for Nvidia is sustained investment in innovation. Recently, the company announced a collaboration with Qnity for innovation in semiconductor and advanced electronics materials. The partnership will focus on “development to support next‑generation AI, high‑performance computing, and advanced packaging technologies.” 

Hyundai and Kia have also expanded their strategic partnership with Nvidia. The strategic partnership is aimed at building out next-generation autonomous driving technology (including Level 4 robotaxi innovation). BYD (BYDDY), Geely (GELYF), Isuzu (ISUZY) and Nissan (NSANY) have adopted NVIDIA DRIVE Hyperion for Level 4 vehicles as well. 

Some of Nvidia's other partnerships include sectors like telecommunications, robotics, and space computing, among others. The firm's focus on innovation — and resulting new products — should help drive sustained growth and shareholder value creation. 

What Do Analysts Say About NVDA Stock?

Based on 49 analysts with coverage, NVDA stock is a consensus “Strong Buy.” A majority of 44 analysts have a “Strong Buy” rating for Nvidia, while three analysts have a “Moderate Buy” rating, and one anlayst has a “Hold” rating. On the bearish side, one analyst has a “Strong Sell" rating.

The mean price target of $268.80 implies potential upside of about 51% from here. Further, the most bullish price target of $380 suggests that NVDA stock could rise as much as 113% from current levels.

Among recent bullish views, Bank of America reiterated a “Buy” rating with a $300 price target. Analysts pointed to Nvidia expecting $1 trillion in data center revenue from 2025 to 2027. When also factoring in CPUs, STX storage racks, and LPX LPU racks, the growth projection seems even more robust. 

Another important development to consider is Nvidia receiving orders from customers in China. According to Wells Fargo, China is likely to have an incremental impact of $25 billion on total revenue. With these positives, the growth and cash flow outlook will likely ensure that NVDA stock remains in a long-term uptrend.