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Nvidia (NASDAQ:NVDA) has been one of the most lucrative stock market investments in history. You don’t need me to repeat the amazing quadruple-digit returns the AI chip giant has delivered over the past five years.
However, as I write, the Nvidia share price has dipped nearly 10% in just three weeks. Worries are building about the future growth trajectory of the company, particularly from those who believe we’re currently in an AI bubble.
Recent news that Meta intends to spend billions on custom AI chips from Alphabet‘s Google has also rattled some investors. Google’s chips (TPUs) are generally more energy-efficient than a typical Nvidia GPU (though far less versatile). So this adds some competitive risk in future.
Given this backdrop then, is it realistic to expect Nvidia stock to keep outperforming? Here’s what the experts are thinking right now.
Latest 2026 price forecasts
Despite mounting worries, Wall Street analysts remain overwhelmingly bullish. A whopping 65 out of 71 rate the stock as a Buy. Only one has Nvidia down as a Sell.
Yesterday (1 December), for example, analysts at Morgan Stanley raised their price target from $235 to $250. They see Nvidia “maintaining dominant market share“.
And rather than any demand issue, the problem is that customers can’t get enough supply, particularly Nvidia’s forthcoming Vera Rubin platform.
The Morgan Stanley price target is slightly under the average of $255 — which is nearly 42% above Nvidia’s current stock price of $180. So, if this target comes off, someone investing £7,000 today could have nearly £10,000 by the end of 2026.
Latest earnings forecasts
Is this realistic? Well, projections aren’t prophecies. A lot will depend on market sentiment towards AI, and this is hard to predict 12 weeks from now, never mind 12 months.
But looking at the current earnings forecast for next year (FY2027), which is around $7 per share, the stock doesn’t look overvalued. Assuming this earnings target is met, which seems likely given that Nvidia says Blackwell chip sales are “off the charts“, it puts the forward price-to-earnings (P/E) ratio at roughly 25.
It’s worth noting that analysts see revenue topping $400bn by FY2028 (ending January 2028), up from $130bn last year. And based on earnings estimates for that year, the forward P/E drops to just 20.
Going by this, it’s not at all a stretch to imagine Nvidia stock trading near a record high of $255 by the end of 2026.
Compute demand keeps accelerating and compounding across training and inference — each growing exponentially…The AI ecosystem is scaling fast — with more new foundation model makers, more AI startups, across more industries, and in more countries. AI is going everywhere, doing everything, all at once.
Jensen Huang, founder and CEO of Nvidia
Expect a bumpy ride
Now, I don’t expect the share price to go up in a straight line. I know first-hand how volatile this stock can be — it can drop 25% in the blink of an eye.
But for investors searching for an AI stock to consider, I think Nvidia is still worth a look. It remains at the centre of the AI revolution, which is rapidly branching out to areas like humanoid robotics and self-driving cars.
