Could Nvidia's Stock Soar by 90%? This Wall Street Analyst Thinks So.

Group 1 - Nvidia's stock has recently experienced a decline, down over 20% from its all-time high, placing it in bear market territory, despite analysts maintaining a higher average price target [1][2] - The average price target among 42 analysts is $178.18, indicating a potential upside of 54%, with the highest target set at $220, suggesting a 90% upside from current levels [2] - Nvidia's GPUs are central to the AI revolution, providing significant advantages over traditional CPUs, which has allowed the company to dominate a crucial sector [3][4] Group 2 - Nvidia's revenue growth has been exceptional, with management expecting Q1 revenue of $43 billion, reflecting a 65% increase, and Wall Street projecting FY 2026 revenue of $204 billion, indicating 56% growth [6] - Historical valuation levels show Nvidia has traded around 61 times trailing earnings, but currently trades at a discount of 39.5 times trailing earnings [7][8] - For Nvidia to reach a stock price of $220, it would require an EPS of $3.67 based on a 60 times trailing earnings valuation, which is feasible given the expected revenue growth [9][10] Group 3 - Achieving a $220 stock price with a 40 times earnings valuation would necessitate an EPS of $5.50, which is higher than the expected $4.50, but analysts project EPS of $5.72 in FY 2027 [10] - While reaching $220 in one year may be challenging, a two-year horizon makes this target more attainable, representing a potential 90% return [11]