Nvidia Stock Just Got a New Street-High Price Target. Should You Buy NVDA Now?

Core Viewpoint - Nvidia has emerged as a dominant player in the AI revolution, with its stock experiencing significant growth despite initial challenges in the year, driven by strong demand for its products and positive market sentiment [1][5]. Company Performance - Nvidia's stock is up 39% year-to-date and 75% over the past six months, reaching a high of $195.62 on October 10 before a pullback [1]. - The company reported impressive Q2 fiscal 2026 earnings, generating $46.7 billion in revenue, a 56% year-over-year increase, with adjusted EPS of $1.05, reflecting a 54% annual jump [9]. - The data center business was a standout, generating a record $41.1 billion, with significant contributions from the new Blackwell architecture [10]. Market Position and Valuation - Nvidia's market capitalization is currently at $4.5 trillion, with potential to reach $8 trillion if HSBC's price target of $320 is realized [4][14]. - The stock is trading at 43.16 times forward earnings, which is high compared to peers but considered justified given its historical averages and expected double-digit earnings growth [8]. Analyst Sentiment - Analysts remain optimistic, with a consensus rating of "Strong Buy" for NVDA, where 40 out of 47 analysts recommend a "Strong Buy" [17]. - EPS is forecasted to rise 44% annually to $4.22 for fiscal 2026, followed by a 40% increase to $5.92 in fiscal 2027 [13]. Future Outlook - Management projects Q3 revenue of around $54 billion, with a non-GAAP gross margin expected to be around 73.5% [12]. - Analysts anticipate significant earnings upside due to an expanding total addressable market for AI GPUs and potential easing of GPU restrictions from China [15][16].