AI will drive Nvidia higher by more than 40% from here, says Wells Fargo

Nvidia’s rally will not run out of steam anytime soon, according to Wells Fargo. The bank, which has an overweight rating on the chipmaker, raised its price target to $315 from $265. The new forecast calls for 44% upside from Monday’s close. “With continued indications / commentary pointing to a compute demand > supply backdrop, we think a key factor driving NVDA’s Data Center rev is the company’s ability to scale [gigawatts] of AI infra deployed,” analyst Aaron Rakers said Tuesday in a note to clients. Rakers highlighted Nvidia’s Blackwell platform for AI as major drivers of its data center revenue. That artificial intelligence pipeline is projected to reach more than $1 trillion by 2027, per Wells Fargo. The company also stands to see more upside from its other offerings, including Groq 3 LPX, a rack-scale AI inference accelerator designed for Nvidia’s Vera Rubin supercomputing architecture, according to the analyst. Rakers also said Nvidia remains attractively valued despite being up 18% year to date. Despite the peak share / margin concerns, we continue to argue that NVIDIA trading at < 20x P/E on what we view as durable 2027 consensus estimates and favorable growth outlook should be bought," Rakers wrote. “We see NVIDIA as one of the most attractive secular growth stories in large-cap semis.” Of the 61 analysts covering Nvidia, 57 have a buy or strong buy rating on shares, LSEG data shows.