Nvidia (Nasdaq: NVDA) The actions have been fairly low in recent times, because it has been at the center of a market sale which will particularly harm any business with a significant exhibition for the arms race for artificial intelligence (IA). Nvidia is down more than 20% compared to its top of all time, placing it on the territory of the bear market. However, the average price objective on NVIDIA shares remains much higher than its current price.
According to Tipranks, the average price objective on NVIDIA shares among 42 analysts is $ 178.18, indicating an increase of 54%. However, Rosenblatt Hans Mosesmann analyst has the highest price target, $ 220, indicating an increase of 90% of current levels.
It would be a massive movement of one year, but is it possible? Let’s take a look.
Nvidia Graphic processing units (GPU) feed the AI revolution. GPUs have an advantage over traditional CPUs because they can deal with several calculations in parallel. In addition, they can be combined in clusters to amplify this effect. This advantage, combined with the best NVIDIA GPU and infrastructure to support them, has enabled the company to take control of a very important sector.
This success resulted in strong growth for Nvidia, who saw the revenues and profits light up since the kick -off of the AI arms race in 2023.
However, Nvidia has not yet finished growing. Many most important customers of NVIDIA (the technology giants that buy GPU trucks to feed the workloads of AI) have indicated that they accelerate their IA expenses in 2025. It is a fantastic new for NVIDIA, and strong growth should persist throughout 2025.
For the first quarter, management provides income of $ 43 billion, which indicates growth of 65%. Although the management has not given the directives for the 2026 financial year, Wall Street provides for revenues of $ 204 billion, which indicates growth of 56%. It is the growth of monsters, and it occurs at a level that no one has seen for a company of Nvidia size.
All this plays with the aim of $ 220 of Mosesmann on the actions of Nvidia, but is this projection realistic?
To understand what a $ 220 course would indicate, let’s examine historical assessment levels. Since 2024, Nvidia has been negotiated for around 61 times the train income, which is understandable for a company that increases its income quickly.
However, with its profit price of 39.5 times, the shares are currently negotiated. If the action has reached $ 220 per share and has returned to a level of evaluation of the profits of 60 times (I do not say that the evaluation is justified), it would require a profit per share (BPA) of $ 3.67.