NVIDIA Receives New Wall Street Boost: 18% Surge Forecast Ignites AI Valuation Frenzy

Deep News05-13 21:23

Wells Fargo has raised its price target for NVIDIA to $315, reinforcing the bullish AI-driven valuation thesis ahead of the upcoming earnings report.

Wells Fargo increased its target price for NVIDIA from $265 to $315 and maintained its "Overweight" rating, suggesting the stock may still appear inexpensive prior to the chipmaker's quarterly report on May 20th.

The firm employed a novel valuation model linking AI demand to global data center power capacity. This approach indicates the company's earnings outlook for 2027 could be more sustainable than peak-cycle estimates.

The bank acknowledged ongoing concerns regarding margins and market share, including competitive pressures and the rise of custom chips. Despite this, Wells Fargo calculates the stock trades at less than 20 times its estimated 2027 earnings.

NVIDIA's stock has risen approximately 18% year-to-date and about 77% over the past 12 months.

Wells Fargo's assessment intensifies the debate over whether the chipmaker's growth remains undervalued ahead of its earnings release.

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