Semiconductor giant Nvidia (NVDA) reported upbeat fiscal first-quarter earnings and a solid outlook, backed by continued demand for the company’s AI (artificial intelligence) chips. Moreover, the company announced an $80 billion buyback authorization and a 25-fold increase in its quarterly dividend to $0.25 per share. Yet NVDA stock fell about 1.8% on Thursday and 1.9% on Friday amid elevated investor expectations and concerns about intensifying competition in the AI chip market. Nevertheless, several top analysts remain bullish on Nvidia stock and increased their price targets to reflect strong upside amid robust growth potential.
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200% short exposure to NVDA with NVDSLet’s look at the opinions of some of the top analysts.
Baird Analyst Lifts NVDA Stock Price Target to Street-High of $500
Impressed by the Q1 FY27 print, Baird analyst Tristan Gerra lifted his price target to a Street-high of $500 (132% upside potential) from $300, while reiterating a Buy rating. Nvidia continues to be Baird’s top idea. Gerra highlighted that the company is winning market share in inference and at hyperscalers.
He noted that Nvidia expects Vera Rubin’s adoption rate at frontier model companies to surpass that of the Blackwell platform. In fact, the tech giant expects standalone Vera’s performance to massively exceed that of x86 CPUs (central processing units), presenting an incremental $200 billion total addressable market (TAM). Importantly, Nvidia already expects about $20 billion in total CPU revenue this year.
Gerra emphasized that NVDA expects AI infrastructure spending to surge from more than $1 trillion in 2027 to $3-$4 trillion annually by 2030, driven by the growing adoption of agentic AI across industries.
Top Analysts See Solid Growth Potential in NVDA Stock
Top Bank of America analyst Vivek Arya raised his price target for Nvidia stock to $350 (62%+ upside potential) from $320 and reaffirmed a Buy rating. Arya noted that the company delivered a “solid” beat-and-raise, though its $91 billion Q2 FY27 revenue outlook was in line with bullish expectations, leading to post-earnings volatility in the stock. The 5-star analyst prefers to “ignore this noise” and focus on some key aspects:
- Nvidia’s unique full-stack positioning in the largest and fastest-growing tech market, with AI TAM projected to grow 4x over the next four years.
- NVDA’s superior gross margin at 75% and free cash flow margin around 48%, with its dividend boosted by 25 times to a yield of 0.45%, a quarter earlier than Arya expected. The analyst also highlighted solid buyback authorization.
- Emerging leadership in agentic CPU of $200 billion TAM (compared to BofA’s estimate of $125 billion), with $20 billion of demand expected in the second half of Fiscal 2027 at an average selling price of $5K and memory/wafers reserved.
Likewise, Truist analyst William Stein raised his price target for Nvidia stock to $307 (about 43% upside potential) from $287 and reaffirmed a Buy rating. The analyst noted that the company delivered a “clean beat & raise” quarter. Stein noted that demand remains strong and NVDA’s growth is re-accelerating. He continues to believe that AI is far from a bubble, with a TAM CAGR that looks realistic at 50%. He noted the company’s 2030 TAM estimate of $3 trillion-$4 trillion.
Stein noted that there has been an improvement in Nvidia’s customer positioning and the enhanced capital allocation with higher dividends and buybacks. “NVDA’s biggest challenge remains the law of large numbers, as index representations challenge, but don’t prohibit, outperformance,” concluded Stein.
Is NVDA Stock a Buy Now?
Overall, Wall Street is bullish on Nvidia stock, with a Strong Buy consensus rating based on 40 Buys, one Hold, and one Sell. The average NVDA stock price target of $299.97 indicates 39.3% upside potential. NVDA stock has risen 15.5% year-to-date.
