Nvidia (NASDAQ:NVDA) stock is up today after Wall Street doubled down on the AI rally, with analyst optimism giving shares another push higher. The stock closed Monday about 4% higher and is up another 1% in after-hours trading.
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Forget margin or options. Here's how the pros trade NVDAAmong the bulls is DBS analyst Fang Boon Foo, who raised his price target on Nvidia to $250 from $220 while assigning a Buy rating. (To watch Foo’s track record, click here)
Foo, who ranks among the top 3% of Wall Street analysts, points first to what he calls “long-term, structural demand for AI applications.” In his view, Nvidia remains the clear leader in AI chips, with GPUs that are “cutting edge and market leading” and preferred for high-powered computing and AI workloads.
That matters because Nvidia is not simply benefiting from one strong product cycle. Foo argues that the company’s “relentless pursuit” remains visible in its plan to upgrade its AI accelerators every year, with the upcoming Rubin platform expected to replace the current Blackwell generation. In other words, the analyst sees Nvidia’s innovation cycle as a reason customers may keep spending, rather than pause after the current wave of AI infrastructure investment.
The near-term picture also looks strong in Foo’s view. The analyst highlights Nvidia’s “revenue visibility over the near- and medium-term,” noting that the company continues to reach new highs with each passing quarter. Management’s first-quarter fiscal 2027 revenue guidance of $78 billion, which implies a record sequential gain of $13 billion, gives the analyst more confidence in the durability of the current AI investment cycle.
Foo also points to margin recovery as part of the bull case, saying gross margins are expected to move back toward the 75% range in the coming quarters.
Looking further ahead, Foo says Nvidia’s medium-term outlook is supported by an ambitious milestone of $1 trillion in cumulative AI chip revenue through calendar 2027, twice the earlier $500 billion target through calendar 2025 and 2026.
All in all, Foo believes that near-term AI momentum remains achievable because of rising capex commitments from key hyperscalers, continued sovereign AI buildout, and expectations for a smooth Blackwell-to-Rubin transition.
The broader Street is largely aligned with that bullish stance, with Nvidia carrying a Strong Buy consensus across dozens of analysts. In fact, 40 analysts rate NVDA stock a Buy, with only one on the sidelines and one suggesting a Sell. Price targets also point to further upside, with the average estimate at $274.38, implying about 27% gains from current levels even after the stock’s recent run. (See NVDA stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.