On Thursday, Nvidia stock (NVDA) received a major vote of confidence from analyst Fang Boon Foo from DBS. Holding a prestigious 5-star analyst rating, Foo is known for his accurate forecasts in the tech sector. In his latest update, he reiterated his Buy rating and raised his price target for Nvidia to $220, up from his previous forecast of $180. In his report from Thursday, April 2, Foo highlighted that the company is currently benefiting from a “strong AI-led growth cycle.”
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The reason for the raised target sits with Nvidia’s massive lead in the infrastructure space. As companies around the globe race to build their own AI models, they are turning to Nvidia’s chips to provide the necessary horsepower.
Foo noted in the report that the company’s “datacenter segment remains the primary engine” for its financial success. He explained that because Nvidia provides the essential building blocks for the next generation of computing, it is capturing the majority of the spending in the global server market. The analyst believes this specialized hardware makes the company “well-positioned to capture the expanding TAM” as more industries adopt automated intelligence.
Nvidia’s Supply Can’t Keep Up with AI Demand
One of the most striking parts of the report is just how fast the company is growing. Foo stated that “demand for its Hopper and Blackwell AI-chips likely to outstrip supply well in FY2026.” This means that even as Nvidia ramps up production, they simply cannot build chips fast enough to satisfy their customers.
With the 2026 growth plan in full swing, Nvidia is proving that it can maintain its momentum despite its massive size. Foo predicts the company is “poised to exceed USD200bn of sales in FY26,” a massive milestone that would represent over 56% growth year-over-year. As long as big tech continues to spend on infrastructure, the team at DBS sees a nice path for the stock to reach its new all-time highs.
Is Nvidia Stock Still a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock based on 41 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average 12-month Nvidia price target of $273.57 per share implies 54.2% upside potential.
