Nvidia: here are analysts’ new share price forecasts after Q3 earnings, and they’re high

Nvidia’s (NASDAQ: NVDA) share price jumped 5% yesterday (20 November). The driver was the company’s third-quarter (Q3) earnings, which were absolutely magnificent.

Looking ahead, Wall Street analysts see the chip stock going much higher as the AI revolution gains momemtum. Here’s a look at some of the latest share price forecasts.

Blockbuster earnings

Nvidia’s Q3 earnings, for the three months to 26 October, showed that demand for its AI computing hardware is sky-high right now.

For the period, revenue was up 62% year on year to $57bn (versus $54.8bn expected). Meanwhile data centre revenue was up 66% to $51.2bn (versus $48.6bn expected).

In terms of profitability, non-GAAP net income for the quarter amounted to $31.8bn. Earnings per share came in at $1.30 versus $0.81 a year earlier (+60%).

It’s worth pointing out here that these growth figures would be impressive for a small company. The fact that Nvidia is the largest business in the world today – with a market cap of near $5trn – and generating this kind of growth is mind-blowing.

Turning to guidance, it was very strong. Currently, Nvidia expects revenue for this quarter (Q4) to come in at $65bn (versus $61.3bn expected).

Note that on the earnings call, CFO Colette Kress said that the company has secured revenue of half a trillion dollars for its current chip, Blackwell, and its next chip, Rubin. This will come from the start of this year through to the end of calendar year 2026.

There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different.
Jensen Huang, Founder and CEO of Nvidia

New price targets

Since the earnings report, professional research analysts have been scrambling to increase their price targets for the stock. Here’s a look at some new versus old targets.

As you can see, a lot of brokers have increased their price targets significantly. The one that jumps out to me is Evercore’s – it has gone from $261 to a whopping $352 (the highest on Wall Street), which is about 80% above the current share price.

My 2026 forecast

Personally, my own 2026 target for Nvidia stock is $250.

I calculated this by taking the earnings forecast for next financial year (FY2027) of $6.73 per share and assuming that earnings grow by 25% the following year. That would take earnings per share for FY2028 to $8.41. Apply an earnings multiple (a price-to-earnings ratio) of 30 to that EPS figure and we get $252.

Of course, there are no guarantees that it will get to that price. I’m assuming that demand for AI hardware remains strong (it may not) and that sentiment towards tech/AI shares remains bullish (resulting in high earnings multiples).

I’ll point out that I don’t expect Nvidia to get to $250 in a straight line. This is a very volatile stock and there’s a reasonable chance it could see $150 before $250.

I’m optimistic that the AI revolution will continue, however, and that Nvidia will be the primary beneficiary of the buildout. In my view, this is a stock to consider buying on any drop in the share price.

The post Nvidia: here are analysts’ new share price forecasts after Q3 earnings, and they’re high appeared first on The Motley Fool UK.

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• Is Raspberry Pi stock the next Nvidia?

Edward Sheldon has positions in Nvidia. The Motley Fool UK has recommended Nvidia and Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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