NVIDIA Stock Price Forecast - NVDA Powers Toward $260 Target as AI Data Center Boom Redefines Tech Growth

NVIDIA (NASDAQ:NVDA) Stock Price Forecast — AI Powerhouse Targeting $260 Amid Global Compute Expansion

AI Infrastructure Leadership Strengthens NVIDIA’s Core

NVIDIA (NASDAQ:NVDA), currently priced at $185.16, remains the nucleus of the global artificial intelligence infrastructure revolution. The company commands visibility surpassing $500 billion in projected Blackwell and Rubin architecture revenue through 2026, securing its dominance across both AI training and inference workloads. NVIDIA’s CUDA full-stack ecosystem, deeply integrated within Microsoft Azure, Amazon AWS, and Google Cloud, continues to expand its influence beyond traditional semiconductors into long-term AI infrastructure utility. Free cash flow reached $80 billion this year and is forecasted to hit $110–120 billion within two years, supporting a structural valuation near $4.4 trillion despite market volatility.

Q3 FY2026 Results Reveal Explosive Data Center Growth

In the third fiscal quarter, NVIDIA delivered an exceptional performance with total revenue of $57.01 billion, marking a 62.5% year-over-year increase and a 22% quarter-over-quarter gain. The Data Center segment reached $51.2 billion, growing 66% YoY, while Networking revenue climbed to $8.19 billion, up 162% YoY. The company’s Q4 guidance of $65 billion in revenue implies continued acceleration with 15% sequential growth and sustained momentum across hyperscale clients. The Blackwell (GB300/GB200) series now leads compute revenue, while Rubin, launching in the second half of 2026, is set to extend this growth trajectory well into 2027.

Valuation Perspective at $185.16

At $185.16, NVIDIA trades around 39x forward FY2026 earnings and 24x FY2027, with projected EPS rising from $4.69 to $7.46. This compression in valuation multiple reflects fundamental scalability rather than overpricing. A 35–40x FCF multiple on a projected $110 billion in free cash flow suggests fair value between $3.85 trillion and $4.8 trillion, implying that today’s price remains supported by data center growth and monetization visibility.

China and Policy Catalysts Drive Strategic Repositioning

The recent decision by President Donald Trump to allow NVIDIA to sell its H200 GPUs to Chinese “approved customers” under a 25% U.S. revenue share reopened a previously blocked market worth up to $15 billion annually. Despite this, China’s self-reliance push continues, with Huawei, Alibaba, and Baidu advancing domestic AI chips. While short-term adoption of H200s is expected due to superior efficiency and throughput, Beijing’s long-term strategy favors local development. NVIDIA benefits from diversification as major sovereign AI projects in Saudi Arabia, India, and the European Union offset any potential drag from Chinese restrictions.

READ - Is Nvidia Stock a Buy ?

Inference Phase Powers the AI Monetization Cycle

The AI industry has entered the inference monetization stage — where workloads generate direct revenue. OpenAI’s annualized revenue surged from $1 billion in 2023 to $13 billion in 2025, projected to reach $54 billion by 2027 and $125 billion by 2029. Similarly, Anthropic forecasts $70 billion by 2028, doubling API and agent-based revenue. These figures directly tie to GPU compute demand, with NVIDIA maintaining over 90% global inference market share, reinforcing its unrivaled monetization leverage.

Supply Commitments Underscore Multi-Year Demand Strength

NVIDIA’s supply commitments surged 52% quarter-over-quarter to $50.3 billion, reflecting long-term customer bookings for CoWoS wafers, HBM memory, and upcoming Rubin GPUs. This spike signals confidence from hyperscalers securing capacity well into 2027. These commitments validate NVIDIA’s forward revenue visibility and establish a foundation for sustained margin expansion as production scales.

Technical Overview and Market Behavior

At $185.16, the stock trades below its 2025 high of $205.40, consolidating between $178.00 support and $192.50 resistance. A breakout above $193.00 could accelerate toward $210, while downside tests may occur near the 200-day average at $170.20. Neutral RSI levels suggest accumulation phases rather than exhaustion, aligning with institutional buying patterns.

Macroeconomic Efficiency and AI Return on Investment

AI adoption is rapidly enhancing operational margins across major tech firms. Morgan Stanley projects GenAI ROI margins rising from 34% in 2025 to 67% by 2028, translating to over $722 billion in total corporate returns. This systemic adoption cements NVIDIA as the hardware backbone of productivity transformation. Alphabet, Meta, and Amazon have each cited AI-driven cost efficiencies and higher EBIT impact, confirming the economic value NVIDIA’s platforms enable.

Outlook and Verdict

NVIDIA stands as the definitive infrastructure provider for global AI compute, with unmatched order visibility, cash flow generation, and technological depth. At $185.16, the current consolidation phase presents an asymmetric entry point ahead of the Rubin GPU ramp and expanding inference monetization.

Rating: Strong Buy

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