Nvidia (NVDA) Stock: Wall Street Sees 54% Upside From Current Levels

TLDR

• Nvidia stock has dropped 14% from its all-time high in May, while the broader market pushes toward fresh highs
• NVDA is now trading at 16x next year’s earnings estimates — cheaper than the S&P 500
• Revenue grew 85% in fiscal Q1, its fastest growth rate in 18 months
• Citi and Wedbush both issued bullish notes, pointing to growth beyond GPUs into CPUs, networking, and enterprise AI
• The average Wall Street price target sits at $309.33, implying around 54% upside from current levels

Nvidia stock is trading at $201.95, down about 14% from its all-time high set in May. That pullback has pushed its forward price-to-earnings multiple to levels not seen in years.

NVIDIA Corporation, NVDA

The stock now trades at 23x this fiscal year’s earnings. But more eye-catching is the valuation on next year’s numbers — just 16x forward earnings. That’s cheaper than the S&P 500, which is unusual for a company growing at this pace.

Analyst profit estimates have continued to move higher even as the stock has moved lower. That gap between rising earnings expectations and a falling share price is what’s driving the valuation story right now.

Revenue Growth Remains Strong

Nvidia reported 85% revenue growth in its fiscal first quarter — the fastest rate in 18 months. That came after three consecutive quarters of accelerating revenue growth.

The numbers suggest the initial market reaction to China’s DeepSeek last year didn’t slow Nvidia’s business. Customers appear to be prioritizing reliability over cheaper alternatives.

DeepSeek is back in the headlines again. Its new DSpark inference module reportedly improves AI rendering speed by up to 85% without needing new hardware. That raises questions about demand for next-gen Nvidia chips, though similar concerns surfaced in early 2025 without materially impacting results.

Nvidia also recently completed its first major debt offering in five years. Competition in AI chips is growing, and Chinese trade restrictions remain a headwind. Neither is new to the story.

Citi and Wedbush See a Bigger Growth Runway

On Thursday, both Citi and Wedbush published bullish notes on Nvidia, pointing to growth opportunities well beyond its core GPU business.

Wedbush analyst Matt Bryson highlighted Nvidia’s upcoming Vera CPU. He said its high core count could outperform traditional x86 chips, giving Nvidia a path into markets currently led by AMD and Intel.

Wedbush also said Nvidia’s push into networking and general-purpose computing could expand its addressable market well beyond AI accelerators.

Citi spoke with Nvidia’s investor relations team and came away with a constructive view. The firm said demand remains “very strong” and that AI spending is no longer driven mainly by hyperscalers.

AI labs, enterprises, sovereign AI projects, and neocloud providers are all stepping up infrastructure investment. That broadening demand base is something Citi flagged as a meaningful shift.

Citi also said Nvidia’s product roadmap is “fully intact,” pushing back on recent reports of delays to its Kyber platform. The NVLink roadmap has not changed either.

Nvidia reaffirmed its mid-70% gross margin target, supported in part by long-term memory supply deals. The company also reiterated its goal of returning 50% of annual cash flow to shareholders.

Citi added that buybacks could grow over time as cash generation increases.

Based on 36 Buy ratings and one Hold on TipRanks, Nvidia carries a Strong Buy consensus. The average price target of $309.33 implies about 54% upside from current levels.

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