Nvidia maintains its AI chip dominance, with robust and sustainable growth rates, while expanding opportunities beyond hyperscalers.
Despite underperformance versus peers and market skepticism, NVDA trades at just above 20x forward earnings, with EPS CAGR projected above 40% for three years.
NVDA's broadening customer base, deep integration, and VC-style investments underpin a strong moat.
Is Nvidia (NVDA), a Buy, Sell, or Hold?
Impressed by the Q1 FY27 print, Baird analyst boosted his price target for Nvidia stock to a Street-high of $500 from $300, and reaffirmed a Buy rating. Nvidia remains Baird’s top idea. Gerra highlighted that Nvidia is securing market share in inference and at hyperscalers.
The 5-star analyst noted that Nvidia expects Vera Rubin’s adoption rate at frontier model companies to exceed that of the Blackwell platform. Notably, the company expects standalone Vera’s performance to significantly surpass that of x86 CPUs (central processing units), presenting an incremental $200 billion total addressable market (TAM). Importantly, Nvidia projects about $20 billion in total CPU revenue this year.
Gerra emphasized that NVDA expects AI infrastructure spending to jump from more than $1 trillion in 2027 to $3-$4 trillion annually by 2030, driven by the growing adoption of agentic AI across industries.
With 39 Buys, one Hold, and one Sell, Nvidia stock earns a Strong Buy consensus rating. The average of $304.32 indicates 41.3% upside potential. .
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