Nvidia Stock Surges Past $220, Projected to Reach $372 in 2027
Nvidia's stock price rose by 1.48% to $220.78 at the end of the regular session on August 31, making it the world's most valuable public company with a market capitalization of around $5.3 trillion.
The rebound trend for Nvidia's stock continues after its previous correction due to profit-taking following the quarterly report. Analysts project that Nvidia stock could reach $372 by the end of fiscal year 2027, assuming earnings per share of $9.29 and a valuation multiple of 40 times.
Nvidia guided third-quarter revenue of $108 billion, up 89 percent year-over-year, beating estimates. The company's long-term prospects are boosted by aggressive revenue growth guidance for the upcoming fiscal year.
Additionally, the AI capital expenditure (capex) backlog of cloud service providers has topped $2 trillion, reflecting an ongoing AI infrastructure investment cycle that shows no signs of slowing down.