By Trevor Jennewine
Publication Date: 2026-03-05 08:30:00
Nvidia (NVDA +0.10%) has been a cornerstone of the artificial intelligence (AI) trade since ChatGPT was released more than three years ago. The semiconductor company’s share price has increased 1,160% since January 2023, and Wall Street still views the stock as deeply undervalued today.
Among 69 analysts that follow the company, the median target price is $265 per share, implying a 47% upside from its current share price of $180. But Wall Street has consistently underestimated how much money hyperscalers will spend on AI infrastructure, so I think Nvidia is headed even higher in the remaining months of 2026.
Here’s what investors should know.
Image source: Getty Images.
Nvidia has a durable competitive advantage in AI infrastructure
Nvidia is the market leader in data center graphics processing units (GPUs) and high-speed networking equipment, both of which are critical to artificial intelligence (AI). The company has been so successful both because it builds superior hardware and because it has developed an extensive software ecosystem that streamlines the development of GPU-accelerated applications.
To elaborate, Nvidia develops rack-scale computing platforms that bring together CPUs, GPUs, and networking gear. That full-stack strategy lets the company optimize performance and power efficiency at the system level rather than the component level. Importantly, Nvidia is the only company that offers AI networking solutions that merge multiple chips, racks, and even…
