Analysts project Nvidia could reach $398 by 2028 as AI spending rises
Wall Street forecasts suggest Nvidia's revenue could approach $700 billion in fiscal 2028, potentially lifting the share price to around $398.
Nvidia's stock has been volatile this year, falling in the first quarter before recovering later, leaving its year-to-date performance in negative territory. Despite the recent dip, analysts remain optimistic about the chipmaker's growth prospects.
Investment bank UBS has raised its estimates for AI-related capital expenditures, projecting $1 trillion in 2026 and a 40 % increase to $1.4 trillion in 2027. Bloomberg Intelligence reports that major cloud providers such as Microsoft, Oracle, Alphabet and Amazon have a combined backlog of $2.35 trillion, indicating sustained demand for AI infrastructure.
Nvidia expects each gigawatt of its new Vera Rubin processors to generate about $40 billion in revenue, compared with $25 billion per gigawatt for the previous Blackwell generation. Management indicated on the August earnings call that fiscal 2028 revenue could rise 70 % in a supply-constrained scenario.
Consensus forecasts from 73 analysts project a 90 % increase in fiscal 2027 revenue to $411.6 billion, which could push fiscal 2028 revenue toward $700 billion. The median 12-month price target of $318 implies a potential 78 % upside, while the forward price-to-earnings ratio of 11.5 suggests the stock is undervalued relative to its earnings growth.
If Nvidia’s earnings per share reach $15.92 in fiscal 2028 and the stock trades at a 25-times multiple, the price could approach $398, representing a potential gain of about 121 % over the next year.
The Motley Fool notes that Nvidia was not included in its latest list of top ten recommended stocks, although the firm holds positions in several large technology companies, including Nvidia.