Nvidia Stock Soars on Strong Earnings Growth Despite Price Target Hurdles
Nvidia's recent quarterly revenue report has left investors wondering if the stock can reach its target of $350 in 2027. The company posted a strong Q2 fiscal 2027 with revenue reaching $96.22B, up 105.8% year over year.
However, the stock still trades at a fraction of what its earnings growth suggests it deserves, and management noted 'extreme pricing conditions in memory' as one of the challenges facing the company.
The path to reaching $350 is not without hurdles, but analysts are optimistic about Nvidia's prospects. With a consensus target of $327.70, which implies 42.4% upside, ratings stand at 9 Strong Buys, 48 Buys, 2 Holds and 1 Sell.
To get to $350 from today's price of $230.18 would require a gain of 52.1%, but with forward EPS of $13.0579, a price of $350 implies a forward P/E of 27x, which is below the 33x implied multiple in Nvidia's valuation model.