Nvidia Stock Soars as Wall Street Sees 37% Upside Ahead

Nvidia's stock price has surged by 1,390% since January 2023, when the AI boom began. Despite this significant growth, Wall Street analysts believe that the company's shares are still undervalued. The median target price among 65 analysts is $300 per share, which implies a 37% upside from the current price of $218.

The company has maintained its leadership position in the AI infrastructure market due to its dominance in data center accelerators and networking equipment. According to J.P. Morgan research, 26% of hyperscaler capital expenditures (capex) directly benefit Nvidia's bottom line.

Wall Street analysts have consistently underestimated how much hyperscalers will spend on AI infrastructure. In 2026, the consensus estimate for capex spending among the top five hyperscalers was revised upward by over 100%, from $361 billion to $733 billion. Analysts now expect capex growth of 90% in 2026.

Nvidia's earnings are expected to increase at a rate of 44% annually over the next three years, which is roughly equivalent to the projected capex growth of 41% annually through 2028. If analysts continue to underestimate hyperscaler capex spending, it stands to reason that they may also be underestimating Nvidia's future earnings.