Nvidia Has Already Made Investors Rich. Here’s Where the Stock Could Be Headed Next
Nvidia stock has already handed investors gains most people only dream about, yet Wall Street analysts keep raising their targets and the company's newest chips are just hitting the market. Here is what needs to go right for the stock…
Chief executive Jensen Huang summed up the business in four words on the latest earnings call: “Now, compute is revenue.” NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) started out selling graphics cards to gamers. Today it sells whole AI factories: the Vera CPU, the Rubin GPU, NVLink and Spectrum-X networking.
Investors have been well paid along the way. Shares are up 26.86% year-to-date, 1,043.02% over five years and 13,955.94% over ten years, and the stock just reached a record high. Vera Rubin is now shipping, so here’s what NVIDIA would need to do to hit $400 per share in 2027.
Wall Street Already Sees Nearly 39% Upside
The average analyst price target is $327.70. That’s 38.8% above today’s $236.05. Analysts are nearly unanimous: 10 rate the stock a strong buy, 48 a buy and only 1 a sell. For fiscal 2028, which ends in January 2028, the Street expects revenue of $682.7 billion, up 66%. EPS is forecast at $15.6826, up 69%.
Those estimates keep moving higher. Ninety days ago, the fiscal 2028 EPS estimate stood at $12.6737. Over the past 30 days, analysts made 42 upward revisions and zero down ones.
NVIDIA has also exceeded EPS expectations in each of the past 15 quarters, most recently posting $2.22 against a $2.09 estimate. With a run like that, actual results could come in above today’s forecasts.
Here’s What It Takes for NVIDIA to Reach $400
At $236.05, NVIDIA trades at about 15x fiscal 2028 earnings. At $400, the multiple would be about 26x. That’s only slightly above the S&P 500’s forward multiple of 21-23x, and it’s a modest premium for a company whose earnings are forecast to rise by roughly two-thirds.
What Could Push NVIDIA to $400?
- Vera Rubin ramp: Management expects Rubin to be its fastest product ramp in company history. Revenue per gigawatt rises to $40 billion, up from $25 billion for Blackwell.
- Demand exceeding supply: NVIDIA guided for roughly 70% revenue growth in fiscal 2028. Even so, management said “Customers’ forecasts point to our growth doubling next year.” If supply improves, that gap becomes extra upside.
- Hyperscaler spending: Capex from the top five hyperscalers is expected to reach $1.3 trillion in 2027, up from nearly $800 billion in 2026.
- Recurring revenue: Under new neocloud revenue-sharing deals, NVIDIA gets “paid twice, once on the hardware sale and again through the share of rental revenue.”
- Buybacks: NVIDIA has $99B left on its repurchase authorization.
Hurdles remain: the outlook assumes no China data center revenue. Higher memory costs should pull gross margin down to 71% to 72% in Q4. A 5.29% 10-year Treasury yield could also weigh on growth multiples.
NVIDIA’s History Says a 69% Gain Is Within Reach
Getting to $400 requires a 69% gain, and NVIDIA has done better before. Shares rose 171% in 2024, 125% in 2021 and 224% in 2016.
With a market cap of about $5.706 trillion, repeating those returns is harder now, but it remains possible (we studied the early characteristics NVIDIA shared with other monster winners and turned the pattern into a free Next Nvidia playbook).
$400 Is a Stretch, but the Blueprint Is Clear
Reaching $400 would require NVIDIA to gain 69%. Analysts already see 38.8% upside, estimates are climbing and the stock trades at just 15x next year’s earnings.
For the bull case to play out, Vera Rubin supply needs to grow, hyperscaler spending needs to hold up and the beat run needs to continue. Gains of this size are rare, and this is the pattern for how NVIDIA could deliver outsized returns in 2027.
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Vandita Jadeja is a financial publisher with over a decade of experience writing about financial topics, including investment, savings, retirement, insurance and banking. Vandita is a Chartered Accountant who loves to debunk financial concepts for readers.
Her work has appeared on sites that include The Motley Fool, InvestorPlace, and Benzinga. She covers investing and focuses on stock picks and price prediction for 24/7 Wall St.
When not looking for the next stock investment opportunity, she can be found traveling, reading, chasing sunsets and enjoying her iced latte.
