By Trevor Jennewine
Publication Date: 2026-04-05 08:02:00
Nvidia (NVDA +0.87%) has traded sideways for the last six months despite strong financial results and encouraging spending projections from hyperscalers like Alphabet, Amazon, Meta Platforms, and Microsoft.
What’s keeping the stock down? Investors are worried that artificial intelligence (AI) spending is unsustainable. Additionally, the Iran conflict has pushed oil prices to a multiyear high, making interest rate cuts less likely. Investors tend to rotate away from growth stocks when borrowing costs are high.
Nevertheless, Wall Street thinks Nvidia is deeply undervalued. Among 70 analysts, the stock has a median target price of $265 per share, according to The Wall Street Journal. That implies 50% upside from the current share price of $177. But I think that estimate is a little low.
Here’s my prediction: Nvidia will reach $276 per share by December 2026.
Image source: The Motley Fool.
Nvidia has a durable competitive advantage in AI infrastructure
Nvidia dominates the market for data center graphics processing units (GPUs) and high-speed networking equipment, both of which are key in accelerating artificial intelligence tasks. The company has been so successful not only because it builds superior hardware but also because its CUDA software platform is the industry standard in AI application development.
Nvidia’s most consequential competitive advantage lies in vertical integration. The company develops full-stack computing platforms that bring together central…
