The full NVIDIA platform has made the main beneficiaries of the continuous artificial intelligence revolution.
BlackWell chips are witnessing the demand for the offer away from the offer.
Although the evaluation is expensive, NVIDIA can rise from the current levels in the next three years.
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Return to early 2023 – few believe this Nafidia(Nasdaq: nvda) It can climb any higher. I already felt expensive at full prices.
Then nearly ten times increased, as it reshaped itself from a chip supplier to an infrastructure for global artificial intelligence (AI). Today, with the maximum market of $ 3.5 trillion, it is not related to whether NVIDIA dominates the scene of artificial intelligence, it is related to the following.
Photo source: Getty Images.
In the last quarter (the first quarter of the fiscal year 2026, April 27) ended, NVIDIA provided its revenues of $ 44.1 billion, an increase of 69 % on an annual basis. For perspective, this is more than Starbucks and Netflix Geming combined in a quarter.
From this total, 39.1 billion dollars came from the data center, which represents an increase of 73 % on an annual basis. These results reflect the dramatic demand for the company’s infrastructure from companies and governments.
Many major growth drivers are still intact. Institutions and providers of cloud services invest in data centers and infrastructure for Amnesty International. The value of the artificial intelligence data data market is expected to be about $ 100 billion by 2030.
The company’s architectural chips, which are the successors of the large -scale voltage chips, are witnessing a strong demand for Easter and institutions, primarily for the burdens of artificial intelligence inference (spreading artificial intelligence models in a production environment) – before the show. To meet the demand for demand, NVIDIA kept full production connections at the new Taiwan factory in Wistron until 2026 for Blackweell and Rubin Ai servers.
Nvidia is no longer just a chips maker. It now provides a complete solution to the accelerated computing needs. From devices to software and networks, the ecological system in NVIDIA supports high performance and college. NVIDIA software offers frequent and margin revenue flows. Thus, where the program becomes more part of the total revenue in the company, the total margin can already increase from 61 %.
Besides data centers, NVIDIA is also placed to take advantage of the increasing demand for artificial intelligence technologies through new cases of use in areas such as cars, AI Edge, robots, and industrial design. These cases of use are still developing, but they can prove large long -term incentives.
Despite many of its positives, NVIDIA has its risk share.
NVIDIA faces revenue winds due to international exports restrictions, especially to China. The company estimated a loss of H20 chips revenue of about $ 8 billion in the second quarter due to the US export controls for China. If geopolitical tensions are escalated, this pose a great danger to NVIDIA.
Competition is also heating. Advanced small devices It is caught, while the thorny excessive is like alphabet and Amazon It is also dedicated chips.
Analysts now estimate that the target price for the share for 12 months is about $ 176, with the highest targeted estimate of $ 250 and the lowest $ 100.
To find out if these estimates are logical, let’s use the unanimity analyst for NVIDIA profits per share (EPS). Analysts estimate the share profitability in NVIDIA at $ 4.32, $ 5.72 and $ 6.44 in the fiscal year 2026, Fiscal 2027 and Fiscal 2028, respectively.
NVIDIA is traded with profits to the front 36 times. With a more conservative more than 30x, (down from high levels today but suitable for highly growing technology stock), you will get the price of the price for three years of about $ 193-about 25 % of the day levels, or about 7 % of the compound growth rate (CAGR). This does not seem a very attractive suggestion in the current high inflation environment.
However, if the Bull Nvidia can continue, the share profitability of the company can reach $ 7.63 in the fiscal year 2028 and enjoy distinct complications of 35x (in line with the current levels). In this case, the company’s share price can be approximately $ 267 at the end of 2028 – about 73 % of the day level, or 20 % in a center.
Finally, in the case of Bear, it is estimated that EPS in NVIDIA is about $ 5.11, and it can be multiple P/E to ahead approximately 25 (the lower party of high -growth company), translated into a $ 127.11 share price. This will be approximately 17 % less than today’s price.
NVIDIA’s evaluation already includes a large amount of optimism, and the basic state, with 7 % annual returns, may not justify the risks in the high interest rate environment. While there are emerging capabilities, the arrow is currently logical primarily for long -term investors who have high -risk appetite very optimistic about the opportunity of Amnesty International’s infrastructure.
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Susan Fry, CEO of Alphabet, is a member of the Motley Fool Board of Directors. John Maki, former Chole Foods Market, a affiliate company, a member of the Motley Fool Board of Directors. Manali Bradhan has no position in any of the mentioned shares. Motley Fool has positions in advanced, alphabet, Amazon, Netflix, NVIDIA, and Starbucks. Motley Fool has a disclosure policy.
Where will Nafidia be in the next three years? It was originally published by Motley Fool