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Popular Analyst Sets Bold 2026 Price Target On Nvidia Stock

Bonisiwe Shabane
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popular analyst sets bold 2026 price target on nvidia stock

Antonio Bordunovi/iStock Editorial via Getty Images Wall Street analysts believe that Nvidia (NVDA) is significantly undervalued, and I totally agree with it. The company's valuation multiples are poised to contract dramatically over the next few years as it keeps converting Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha).

I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Nvidia (NASDAQ: NVDA) is going up today, Friday, December 26, once again trading above $190 following a newly struck deal with Groq, an American artificial intelligence (AI) company. As the partnership is expected to boost the company’s growth next year, analysts are already setting new Nvidia stock price targets for 2026. Namely, Rosenblatt Securities analyst Stacy Rasgon has reiterated its positive stance on the chipmaker, issuing a new Nvidia price target of $245 and citing its leadership across the AI sector. Specifically, the analyst noted that the non-exclusive licensing agreement covering Groq’s inference technology is a strong catalyst, adding that several senior Groq executives will join Nvidia as part of the agreement. The deal is thus analyzed as strategically meaningful for Nvidia, as Rasgon has argued that it could mitigate some investors’ worries that Alphabet’s (NASDAQ: GOOGL) Tensor Processing Units (TPUs) might be an obstacle on... “NVIDIA management has not made public comments on this agreement.

Strategically we view that licensing an inference technology as important for NVIDIA. This would address concerns around Google’s TPU taking GPU market share as AI expands into the inference stage,” the analyst wrote. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here The semiconductor industry remains at the center of the artificial intelligence (AI)-led investment cycle, fueled by massive cloud spending, accelerating infrastructure buildouts, and a multi-year push toward advanced computing. While market sentiment has wavered at times, the long-term demand backdrop for chips tied to AI remains firmly in place.

NVIDIA Corporation (NVDA) has been the defining winner of this boom, transforming itself from a graphics pioneer into the backbone of modern AI data centers. After a historic run, however, 2025 brought a noticeable slowdown. Shares trailed several chip peers as investors grew cautious, weighed valuations, and questioned whether the AI trade had moved too far, too fast. That pause has only heightened interest at Cantor Fitzgerald. With AI-linked stocks pressured by risk-off conditions and bubble fears, the brokerage firm argues the market is losing sight of the broader opportunity. Analyst C.J.

Muse believes those concerns are overdone, pointing instead to a fresh AI demand inflection taking shape. With next-generation architectures approaching, demand visibility improving, and valuations resetting, Cantor foresees Nvidia’s current setup as increasingly attractive heading into 2026, making it “top pick.” Let’s look at it closely. Santa Clara-based Nvidia has spent decades building itself into one of the most influential technology companies on the planet. What began as a gaming graphics specialist evolved into a computing powerhouse spanning data centers, networking, automotive, and advanced software. From driving gamers’ fantasies to powering the AI boom, Nvidia has evolved from a small GPU manufacturer to the digital age’s gold rush provider. But in 2025, the formerly unstoppable rally has finally caught its breath, it is up only 34%, which for most other companies would still be a dashing territory.

For three consecutive years, Nvidia has been Wall Street’s favorite.In 2023, it skyrocketed 239%, then another 171% in 2024. Though 2025 has been more restrained with a 34% increase year to date, that’s still well above the average growth rate of the market, it is the sort of “slow year” most other companies... But investors are now wondering that is this cooling momentum merely a breather, or the beginning of a slowdown? No one has taken advantage of the artificial intelligence market like Nvidia has. The company’s GPUs, which were once only used to provide better visual effects for gaming, are now the main hardware for AI computing. It is maintaining the backbone of a whole range of applications including ChatGPT and Data centers of the next generation.

Nvidia has estimated that capital costs for AI data centers might go as high as $600 billion in 2025, and continue to grow to $3 – 4 trillion by 2030. Besides, this forecast appeared to be extravagant at first, but eventually the other tech giants such as Microsoft, Amazon, and Google have also come forward confirming their giant AI infrastructure spending plans. The best part is that for every $50 billion data center that is built, Nvidia gets around $35 billion in revenue. What further powers Nvidia even more is the company’s foresight into the future demand. AI chips are not a purchase made on impulse, instead the hyperscalers plan and reserve their orders years ahead. So, this means that the company has one of the shiniest pipelines in the whole tech sector, and those revenue streams are predictable and extend well into the next decade, even longer if one...

To make a realistic projection, we need to do some simple calculations. If Nvidia’s prediction regarding the AI data center spending is accurate and that spending increases at a CAGR of about 42%, then Nvidia’s revenue could as well. Wall Street has an estimation of $207 billion in revenue for the fiscal year 2026 (which is up to January 2026). If Nvidia surpasses the growth of AI capex and reaches $294 billion revenue in FY 2027 with a 50% profit margin, the company that was already strong and its fundamentals will still be the... As the undisputed leader in artificial intelligence computing, Nvidia’s stock now trades around $187.24, reflecting both the company’s unmatched dominance in AI chips and the investor enthusiasm that surrounds its future. From powering global data centers to enabling robotics and autonomous vehicles, Nvidia stands at the heart of the technological revolution shaping the next decade.

This article provides a data-driven Nvidia stock forecast using Wall Street consensus, fundamental valuation metrics, and analyst insights. We examine the forces propelling Nvidia’s meteoric rise, assess the downside risks, and outline intelligent strategies for investors navigating the high-stakes world of AI stocks. Nvidia’s upside stems from its unrivaled dominance in AI chips and software, positioning it as the backbone of global AI infrastructure growth. Strong data center demand and software monetization continue to fuel the bullish long-term narrative. Analysts expect steady expansion ahead, with the consensus projection for the year ahead above $215 per share. Yet its valuation remains a key vulnerability, with multiples far exceeding industry norms.

Any slowdown in AI spending or earnings delivery could trigger sharp multiple compression.

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