NVIDIA (NVDA) is poised for significant stock price appreciation, driven by strong demand for its Grace Blackwell and Vera Rubin platforms. Despite facing competition from custom chips and macroeconomic uncertainties, its comprehensive platform solutions, expanding CPU business, and continually upwardly revised earnings estimates from analysts all provide support for the stock. Some analysts project that NVIDIA’s share price could reach $350 per share by fiscal 2028. It should be noted that NVIDIA’s fiscal year ends in January each year, so its fiscal 2028 actually begins in early 2027 and ends in January 2028.
NVIDIA remains the leading supplier of artificial intelligence data center hardware. In the first quarter of fiscal 2027, the company’s revenue grew 85% year-over-year to $82 billion, demonstrating strong momentum. The company expects second-quarter fiscal 2027 revenue to be approximately $91 billion. Meanwhile, NVIDIA plans to begin large-scale shipments of its next-generation Vera Rubin platform later this year. Analysts project that NVIDIA’s full-year revenue will grow 82% to $392 billion, with earnings per share climbing to $8.98. There is a clear disconnect between stock performance and business growth driven by robust demand.
Of course, NVIDIA faces intensifying competition, some of which comes from custom chips designed by its own major customers. However, NVIDIA’s advantage lies in building all components of a complete computing platform, rather than merely selling chips. Market demand for its networking products and Blackwell systems remains strong, with data center revenue growing 92% year-over-year in the previous quarter. Additionally, NVIDIA is expanding its server central processing unit (CPU) design business and bundling these with its GPUs. The company has stated that its Vera CPU is expected to generate $20 billion in revenue this year.
Given this growth momentum, analysts have been raising their expectations for NVIDIA’s performance. Currently, the stock trades at a forward price-to-earnings ratio of 23 times, roughly half of analysts’ current long-term earnings growth forecast of 45% annually. NVIDIA’s price-to-earnings ratio has rarely fallen below 20 times, so the current stock price may represent a timely entry point.
Over the past 12 months, NVIDIA generated $253.5 billion in revenue and continues to sustain remarkable growth. In the first quarter of fiscal 2027, driven by its current flagship data center chip platform Grace Blackwell, the company’s sales rose 85% year-over-year. Vera Rubin has entered full production and may begin shipping later this year. Chief Executive Officer Jensen Huang stated that NVIDIA expects combined Blackwell and Rubin series products to achieve $1 trillion in sales by next year, indicating that AI hyperscalers have not relaxed their investment in AI computing. According to Wall Street forecasts, by fiscal 2028, NVIDIA’s total sales could more than double to approximately $555.5 billion.
Analysts also project that NVIDIA’s earnings per share for fiscal 2028 will reach $12.79, nearly double the current 12-month earnings per share of $6.53. This projection appears reasonable as long as the company maintains its pricing power. At a price-to-earnings ratio of approximately 27 times, the corresponding share price would be $350. It is important to note that this corresponds to the 12-month earnings ending in January 2028. Currently, NVIDIA’s price-to-earnings ratio is about 31 times, and this forecast assumes some contraction in its valuation multiple.
Of course, the relevant figures could change. The Rubin platform consists of seven chips forming an AI supercomputer chipset, which will expand NVIDIA’s coverage in data centers. If Rubin sales exceed expectations, this could bring additional growth and upside potential. Conversely, if hyperscalers cut capital expenditures, this data center construction boom could cool off at any time. Uncertainty is inherently part of investing.
