Nvidia (NVDA) may still be one of the “most attractive” AI plays, according to Wolfe Research, which sees strong earnings growth ahead despite recent stock underperformance. The firm’s top analyst, Chris Caso, said Nvidia’s long-term outlook remains solid, supported by rising demand for AI chips and upcoming product launches. Notably, NVDA stock has fallen 6.5% over the past five trading sessions and closed 3.4% lower on Wednesday.
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Wolfe said Nvidia’s performance continues to be supported by strong fundamentals. The firm also added Nvidia to its “Alpha List” last month, which highlights its top investment ideas.
AI Chip Demand and New Platforms Support Growth Outlook
Wolfe expects Nvidia to deliver strong earnings growth over the next few years. The firm sees estimates for 2026 and 2027 moving higher, supported by rising chip shipments and stronger pricing.
A major part of that outlook is tied to Nvidia’s next wave of products. Wolfe pointed to Nvidia’s upcoming Rubin and Rubin Ultra platforms as key drivers, saying Rubin is expected to deliver roughly five times higher AI inference performance than Blackwell. The firm expects these next-generation chips to help Nvidia maintain its leadership in AI computing and support future revenue growth.
Reflecting this confidence, Wolfe raised its fiscal 2028 earnings estimate to about $11.50 per share, which is nearly $1.50 above current Wall Street estimates.
Valuation Seen as More Appealing
Wolfe said Nvidia’s valuation now looks attractive based on its earnings outlook. The firm estimates the stock is trading at roughly 16 times projected fiscal 2028 earnings, which it views as reasonable given Nvidia’s long-term growth potential.
At the same time, Wolfe noted that Nvidia has lagged some AI peers recently, including Micron (MU), partly due to concerns about competition from custom AI chips such as Google’s (GOOGL) tensor processing units and the timing of new chip launches. Even so, the firm believes strong AI demand should continue to support Nvidia’s growth.
Is NVDA Stock a Good Buy?
Overall, Nvidia scores Wall Street’s Strong Buy consensus rating based on 37 Buys, one Hold, and one Sell. The average NVDA stock price target of $260.06 indicates about 49.3% upside potential from current levels.
