Wall Street Projects Nvidia Shares Could Surge 140% to $500 on AI Demand
Nvidia reported a 92% year-on-year increase in data centre revenue, while introducing the Vera CPU to target a $200 billion market.
Wall Street analysts are projecting that Nvidia shares could rise by approximately 140% to reach $500 per share, driven by sustained demand for artificial intelligence infrastructure. A bullish analyst from Baird has issued the Street's most optimistic price target, assigning an "Outperform" rating to the semiconductor giant. This projection comes despite Nvidia’s stock gaining just 11 per cent year-to-date, trailing the explosive rallies seen in memory stocks such as Micron and Sandisk.
Nvidia reported a 92% year-on-year surge in data centre revenue to $75 billion for the first quarter of fiscal 2027. Total revenue increased 85% year-on-year to $82 billion, marking the company’s 14th consecutive quarter of sequential growth. Adjusted gross margin remained stable at 75%, even as the company managed the rapid production ramp of its Blackwell systems.
The company introduced the Vera CPU, an Arm-based processor designed for agentic AI. Management estimates that this new product line could open a $200 billion total addressable market and generate nearly $20 billion in CPU revenue this year. Nvidia plans to begin production shipments of the Vera Rubin platform in the third quarter of the current calendar year.
Nvidia’s next-generation Rubin GPU is projected to deliver up to 35 times more inference throughput than the current Blackwell architecture. This performance leap requires even more advanced high-bandwidth memory systems, with Nvidia sourcing HBM from suppliers including SK Hynix and Micron. The physical AI business generated more than $9 billion in revenue over the past 12 months, and the company’s partnership with Uber is expected to power robotaxi fleets in nearly 30 cities across four continents by 2028.
Hyperscalers such as OpenAI, Anthropic, Microsoft, and Meta are expected to collectively spend over $1 trillion in capital expenditures in 2027. Nvidia estimates that annual AI infrastructure spending could reach between $3 trillion and $4 trillion by the end of the decade. The consensus rating among 49 covering analysts remains "Strong Buy," with 43 analysts holding a "Strong Buy" rating, three "Moderate Buy," two "Hold," and one "Strong Sell."
