Why This Top Analyst Thinks Nvidia Stock (NVDA) Can Keep Rising

Business Insider

8 hours ago

Nvidia (NVDA) stock has already seen a massive run-up this year. The stock is up 27% over the past year, briefly hitting a market cap of $3.92 trillion on Thursday. Despite this rally, one Top analyst believes that there's still more room for NVDA to climb. Vijay Rakesh, a 5-star analyst of Mizuho Securities, raised his price target on Nvidia to $185 from $170, while maintaining a Buy rating. The new target implies 16% upside from the current levels. Rakesh's latest target hike shows he remains confident in Nvidia's ability to expand further as AI demand surges.
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Analyst Sees Strong AI Demand Driving Future Upside
Rakesh reiterated his near-term revenue and earnings estimates, still expecting $45 billion in revenue and $0.98 in EPS for Q2 FY26. However, he raised his longer-term forecasts, citing better chip supply and faster-than-expected rollout of new products. He now projects fiscal 2026 revenue at $202 billion with EPS of $4.38, both slightly above consensus. He also increased its projections for Fiscal 2027 and 2028, reflecting his belief that Nvidia has room to keep growing even after its massive stock run.
A key driver behind this optimism is Nvidia's product roadmap. Rakesh remains optimistic about the demand for Nvidia's current GB200 chips, which he expects will stay strong through late 2025. This, he believes, could more than make up for the potential loss of revenue from Nvidia's H20 chips, which are currently affected by export restrictions. Meanwhile, the upcoming Rubin platform is seen as another growth driver into 2026.
Rakesh also pointed out that Nvidia is working on a new B40 chip aimed at the Chinese market. While shipments are currently blocked, he sees this as a sign that the company is staying ready in case trade rules are relaxed.
Valuation Still Supported by Growth
Rakesh's revised price target is based on a 32.7x multiple of FY27 earnings, slightly higher than before. According to Rakesh, that's still a fair value given Nvidia's dominant role in powering the global AI boom.
Is Nvidia a Good Stock to Buy?
According to TipRanks, NVDA stock has received a Strong Buy consensus rating, with 35 Buys, four Holds, and one Sell assigned in the last three months. The average Nvidia stock price target is $175.69, suggesting a potential upside of 10.26% from the current level.