The AI Trade Is Still On: Why Nvidia Remains at the Center of It
The AI Trade Is Still On: Why Nvidia Remains at the Center of It
Vandita JadejaWed, July 29, 2026 at 3:00 PM UTC
0
Shutterstock / Piotr SwatQuick Read -
NVDA earns a BUY rating with a $262.81 price target, representing 27% upside, backed by $81.6 billion in Q1 revenue, up 85% year over year.
NVDA trades at a P/E of 42 versus AMD's 196, while its $48.5 billion quarterly free cash flow dwarfs both AMD and Broadcom.
Even the bear scenario lands at $228, a 10% gain, supported by $119 billion in supply commitments and 75% gross margins.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
The AI capex cycle keeps compounding, and NVIDIA (NASDAQ:NVDA) sits at the wheel. My model sees room to run from here, even after a decade in which the stock returned 14,797.5%.
Our 24/7 Wall St. price target for NVIDIA is $262.81, pointing to 27.06% upside from the current $206.84 quote. The recommendation is buy, with high model confidence of 0.9. Earnings are growing faster than the multiple is compressing, and the platform moat is widening.
24/7 Wall St. Price Target Summary
Metric
Value
Current Price
$206.84
24/7 Wall St. Price Target
$262.81
Upside
27.06%
Recommendation
Confidence Level
90%
Where the Stock Sits Today
NVIDIA is up 11.04% year to date and 19.21% over the past year, with the current $206.84 quote sitting 28% below its $236.26 52-week high.
The Q1 FY27 report on May 20 was the fourth consecutive beat, with revenue of $81.615 billion up 85.23% YoY and non-GAAP EPS of $1.87 clearing the $1.7738 consensus. Data Center hit $75.246 billion, with networking alone up 199% YoY. Recent partnership headlines reinforce the sovereign-AI thesis.
NVDA Earnings Explorer — 24/7 Wall St.The Bull Case
Q2 FY27 guidance calls for revenue of $91 billion at a 75% gross margin, explicitly excluding China Data Center compute revenue. Supply commitments of $119 billion signal demand runway well beyond current quarters.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
The board authorized an additional $80 billion buyback and lifted the quarterly dividend to $0.25. Analyst consensus sits at $302.83, with 58 buy ratings against a single sell. Our bull case fair value lands at $303.16, a 46.57% return.
What Could Go Wrong
The bear case starts with China. The H20 line generated $4.6 billion a year ago and delivered zero this quarter. Concentration risk is real: hyperscalers make up roughly 50% of Data Center revenue.
Advertisement
Insider activity has skewed toward selling. Counter-argument: $119 billion in commitments and a 75% gross margin point to sustained demand well beyond a single-quarter window. Our bear scenario still lands at $228.21, a 10.33% gain.
NVDA Prediction Tug Of War — 24/7 Wall St.How NVIDIA Compares to AMD and Broadcom
Advanced Micro Devices (NASDAQ:AMD) is the closest direct competitor on merchant GPUs and EPYC server CPUs. AMD posted Q1 FY26 revenue of $10.253 billion, up 37.9%, with Data Center up 57%. AMD trades at a P/E near 196 against NVIDIA's 42, so NVIDIA looks cheaper on trailing earnings despite its scale.
Broadcom (NASDAQ:AVGO) is the custom-silicon and AI-networking counterweight. AVGO's Q2 FY26 AI semiconductor revenue hit $10.80 billion, up 143%, and management guided Q3 AI to $16 billion. Broadcom's $1.82 trillion market cap makes NVIDIA's $5 trillion cap look demanding, but NVIDIA's $48.554 billion quarterly free cash flow dwarfs peer generation. The peer set makes our $262.81 target reasonable.
NVDA Price Target — 24/7 Wall St.The Bottom Line
The 24/7 Wall St. price target of $262.81 stays a buy at high confidence. Free cash flow of nearly $50 billion in a quarter buys forgiveness on multiple compression.
The setup rewards investors who tolerate a beta above 2 and want direct exposure to AI factory capex. Caution is warranted if hyperscaler capex guides roll over into 2027 or a China escalation forces inventory writedowns.
Extending the 24/7 Wall St. price target model forward using the base-case annualized return of 14.97%, here is where NVDA could trade if the AI trade stays intact and margin structure holds near current levels.
Year
24/7 Wall St. Price Target
2026
$238
2027
$273
2028
$314
2029
$361
2030
$415
These projections assume NVIDIA continues converting Blackwell and Vera Rubin demand into free cash flow at current margin levels. Meaningful upside or downside could result from sovereign AI expansion, a full China Data Center reopening, or a hyperscaler capex reset.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Contact editorial@247wallst.com for any questions or corrections.
Source: “AOL Money”
