Why Analysts Think Nvidia Stock Could Still Hit $300

Nvidia shares have dropped below $200 for the first time in a while. The stock is down around 16% from its recent highs and up a mere 6% for the year. For a company that has delivered extraordinary returns to patient investors over the past several years, that kind of underperformance stings. However, the underlying growth story has not changed. In fact, the case for Nvidia reaching $300 per share by late 2027 remains intact.

Why Nvidia sold off

The most recent round of selling pressure stems from a familiar concern. Markets are once again worried about AI overspending. As hyperscalers continue to pour enormous capital into data center buildouts, investors are questioning whether those spending levels are sustainable. Any stock connected to the AI infrastructure buildout has felt the pressure. Nvidia, as the dominant supplier of AI chips, sits directly in the crosshairs of that concern.

However, the hyperscalers themselves have consistently pushed back on this narrative. Time and again, their management teams have told investors that the risk of underspending on AI infrastructure far outweighs the risk of overspending. Furthermore, those companies show no signs of slowing down their capital expenditure plans. Nvidia’s most recent quarterly conference call reinforced that message. Management projected hyperscaler spending will top $1 trillion in 2027, up from a projected $650 billion in 2026. That trajectory points directly toward continued revenue growth for Nvidia.

What analysts are projecting

Wall Street analysts are pricing in that growth story. For the remainder of 2026, analysts project 82% revenue growth for Nvidia. For 2027, that figure rises to 41%. Both numbers reflect a business still operating well above the pace of most companies in any sector.

Looking further out, the average analyst projects $12.76 in earnings per share for fiscal 2028, which ends in January 2028. Applying a reasonable earnings multiple of 25 to that figure produces a projected share price of approximately $319. Consequently, a path to $300 per share by late 2027 appears achievable without requiring any heroic assumptions about the business.

It is also worth noting that the analyst community has historically underestimated Nvidia’s growth. The company has consistently outperformed consensus projections throughout its AI-driven run. If that pattern continues, the $319 figure could prove conservative rather than aggressive.

Why the sell-off may be an opportunity

Nvidia’s current weakness reflects market sentiment rather than a change in the company’s competitive position. It remains the dominant force in AI chip design. Its CUDA software ecosystem creates significant switching costs for customers. Competitors have tried and largely failed to match its combination of hardware performance and software support.

Additionally, the visibility on near-term demand is relatively strong. Management typically has solid information about customer orders over the next several quarters. Given that hyperscalers are committing to trillion-dollar spending levels, the order book supporting Nvidia’s 2027 growth projections is not speculative. It reflects real commitments from real customers who have made clear they are not planning to slow down.

For investors who believe in the long-term AI infrastructure buildout, a 50% potential upside in approximately 18 months represents a compelling entry point. The current sell-off has brought Nvidia back to a level where the risk-reward balance looks favorable for patient investors willing to hold through short-term volatility.

This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security.

Source: The Motley Fool