This Analyst Thinks Nvidia Stock Can Surge 80% From Here. Should You Buy NVDA Now?

Nvidia (NVDA) has long been the crown jewel of artificial intelligence (AI) chipmakers, riding the relentless surge in demand for cutting-edge GPUs. For years, the stock rewarded investors with massive gains as AI adoption soared. But after an explosive multi-year rally, Nvidia finally hit a rough patch in 2025, with its stock slipping into negative return territory, a rare sight for a company that once seemed unstoppable. 

Several challenges have put the brakes on its momentum. A weakening market, escalating trade tensions, and the rise of cost-effective Chinese AI alternatives have rattled investor faith. Adding to the pressure are concerns over export controls, limiting Nvidia’s access to key global markets. As a result, the once high-flying stock has become the second-worst performer among the “Magnificent Seven” group this year, with only Tesla (TSLA) faring worse. 

But, despite these headwinds, the long-term AI growth story remains intact, and Wall Street isn’t turning its back on Nvidia just yet. In fact, one particularly bullish analyst made an eye-catching call last month. The projection suggests that Nvidia’s stock could more than double from its current levels in the coming months. And if that bold forecast plays out, the AI powerhouse may be gearing up for another meteoric rally. 

About Nvidia Stock

California-based Nvidia’s (NVDA) success story is nothing short of extraordinary. As a pioneer in AI and GPU technology, the company has revolutionized everything from gaming and data centers to autonomous vehicles and scientific computing. Its cutting-edge chips have become the backbone of modern innovation, fueling a surge in demand that has propelled Nvidia to the top of the tech world.

Presently valued at a market cap of roughly $2.99 trillion, shares of this chip giant have slipped almost 10% on a YTD basis. While recent volatility has weighed on its shares this year, Nvidia’s longer-term performance remains notable. The stock remains in positive territory over the past year, up about 38%.

On a more optimistic note, Nvidia’s recent struggles have made its valuation far more appealing than its historical levels. The stock is currently priced at 27.9 times forward earnings and 21.6 times sales, trading below its five-year averages of 47.86x and 25.63x, respectively. As the AI darling navigates market challenges, these lower multiples suggest a valuation reset that could attract renewed investor interest.

Nvidia Surpasses on Q4 Earnings

The chip maker dropped its better-than-expected fiscal 2025 fourth-quarter earnings report on Feb. 26, which showed stunning top and bottom-line performances. The AI powerhouse delivered a blowout quarter, posting record revenue of $39.3 billion, reflecting a massive 78% surge year-over-year and beating Wall Street’s expectations by 3.1%. Earnings followed suit, with adjusted EPS climbing 71% annually to $0.89, surpassing the forecast figure of $0.85 per share. 

Nvidia’s dominance in the data center market shows no signs of wavering, with revenue skyrocketing 93% year over year to $35.6 billion, fueled by soaring demand for its H200 Hopper chip. Moreover, management also emphasized the explosive demand for the company’s new Blackwell chips. CEO Jensen Huang noted that the company has already ramped up large-scale production of its Blackwell AI supercomputers, generating billions in sales in just its first quarter. 

Although the company faced a slight margin squeeze in the fourth quarter, with gross margins dipping to 73% from 76% a year earlier, management attributed this decline to short-term challenges tied to the rollout of its Blackwell chips. Looking forward to fiscal 2026 Q1, management projects revenue of $43 billion, with a potential variance of 2%. 

With Blackwell chip demand surging and production scaling, the company expects gross margin to remain low at 70.6% on a GAAP basis and 71% on a non-GAAP basis, each with a 50-basis point variance. Meanwhile, over the longer term, analysts tracking Nvidia project the company’s bottom line to soar 41.3% year-over-year to $4.14 per share in fiscal 2026 and rise another 23.7% to $5.12 per share in fiscal 2027. 

What Do Analysts Expect for Nvidia Stock?

Prior to Nvidia’s fourth-quarter earnings release, Rosenblatt Securities confidently projected the commencement of the company’s Blackwell chip shipments in Q4 and forecast continued strong demand. The firm’s bullish stance was further supported by expectations that Nvidia will shed more light on its product roadmap at the upcoming GPU Technology Conference (GTC) event this month, a move that could solidify its dominance in the AI and semiconductor landscape. 

Keeping these factors in mind, Rosenblatt reaffirmed its "Buy" rating with a $220 price target on NVDA stock. Despite the current market volatility, Wall Street’s confidence in Nvidia remains unshaken, with the stock securing a consensus “Strong Buy” overall. Of the 44 analysts offering recommendations, 38 back it with “Strong Buy,” two give a “Moderate Buy,” and the remaining four maintain “Hold.” 

The average analyst price target of $176.56 indicates 45% potential upside from the current price levels, while Rosenblatt’s Street-high price target of $220 suggests that NVDA could rally as much as 80% from here.