Nvidia Stock Poised for 38% Upswing as AI Trade Heats Up

Nvidia stock could see significant growth in the future, according to recent earnings call data. The company's revenue is expected to grow approximately 70% in fiscal year 2028, and management has stated that the outlook is supply-constrained rather than demand-constrained.

This guidance has flipped the author's read on where the stock is headed, as it suggests that the market is still underpricing the AI trade. Nvidia trades at $217.55, with a price target of $300.33 over the next 12 months, implying 38.05% upside.

The company had a blowout quarter in Q2 FY27, with revenue hitting $96.22 billion and non-GAAP EPS beating consensus by 6.29%. The bull case for Nvidia rests on Vera Rubin economics, which has expanded the company's revenue opportunity to $40 billion per gigawatt.

While there are potential risks, including extreme pricing conditions in memory and supply commitments, the author believes that the risk-reward skew leans constructive. Nvidia's price target is projected to be $375 by 2028, with a bear scenario landing at $254.47.