Semiconductor giant Nvidia’s (NVDA) market-beating first-quarter results failed to move its stock higher but reinforced the bullish thesis of top analysts about the company’s growth potential. Several analysts reaffirmed a Buy rating and raised their price targets to reflect solid upside potential in NVDA stock, citing robust demand for its advanced chips used in artificial intelligence (AI) training and inference. Here, we will discuss the key factors supporting the bullish stance of Wall Street analysts on Nvidia stock.
Memorial Day Sale – Claim 70% Off TipRanks
NVDS: built for a short position on NVDATop Stifel Analyst Raises Price Target for NVDA Stock to $282
Impressed by Q1 FY27 results, Stifel analyst Ruben Roy reiterated a Buy rating and raised his price target for Nvidia stock to $282 (more than 31% upside potential) from $250. The analyst highlighted several aspects for his optimism, including
- Management’s commentary about Vera CPU (central processing unit) opening a new $200 billion total addressable market (TAM) for Nvidia, with visibility to about $20 billion in total CPU revenue in FY27.
- Roy noted continued GPU (graphics processing unit) pricing power, with Nvidia highlighting that H100 rental pricing rose 20% year-to-date, while A100 cloud pricing was up 15%. This indicates strong demand and profitable usage by customers beyond normal depreciation cycles.
- The 5-star analyst also highlighted strength in Nvidia’s networking business, with revenue surging 199% year-over-year to $14.8 billion. “Spectrum-X alone has evolved into the AI-Ethernet category leader on revenue and signals a maturation of NVDA’s networking moat,” noted Roy. He also highlighted the demand for Nvidia’s NVLink, Spectrum-X Ethernet, and InfiniBand offerings.
Furthermore, Roy pointed to enhanced capital returns, with the announcement of an $80 billion share buyback authorization on top of the $39 billion remaining limit, alongside a dividend hike to $0.25 per share from $0.01 per share. He added that Nvidia CFO Colette Kress confirmed the company’s aim to return about 50% of free cash flow to shareholders in FY27.
Mizuho Is Confident About Continued Growth
Likewise, top Mizuho analyst Vijay Rakesh raised his price target for Nvidia stock to $300 (about 40% upside potential) from $275 and reaffirmed a Buy rating, saying, “we see NVDA remaining the merchant AI-GPU leader, reaching ~25x F28E P/E.”
Rakesh noted that NVDA’s market-beating Q1 performance and strong Q2 guidance were driven by continued strength in Blackwell demand and solid execution. He added that Vera Rubin is on track for a launch in the October quarter and that Vera CPU opens up an incremental $200 billion CPU TAM, with $20 billion in standalone CPU revenue estimated in FY27 from Rubin racks.
The 5-star analyst noted Nvidia’s projection that the AI infrastructure opportunity will grow to $3-$4 trillion by 2030. Rakesh sees continued demand momentum across cloud service providers (CSPs) and sovereign customers, while industrial/enterprise clients are driving robust long-term growth. He mentioned that Nvidia generated more than $9 billion in physical AI revenue over the trailing 12 months, driven by solid demand and growing automotive partnerships, including with players like BYD (BYDDF), Uber Technologies (UBER), Geely (GELYF), and Hyundai (HYMLF).
Is NVDA a Good Stock to Buy Now?
Overall, Wall Street has a Strong Buy consensus rating on Nvidia stock based on 38 Buys, one Hold, and one Sell. The average NVDA stock price target of $306.46 indicates about 43% upside potential. NVDA stock has gained 15% year-to-date.
