Nvidia (Nvda 1.92%)) 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’s income growth has been remarkable
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.
NVDA Revenue (TTM) data by Ycharts
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?
Nvidia’s equity and projections could support a share of $ 220 in the near future
To understand what a $ 220 course would indicate, let’s examine historical assessment levels. Since 2024, Nvidia has exchanged 61 times the dragging gainsWhich is understandable for a company that quickly increases its income.
NVDA PE ratio data by Ycharts
However, with its profit price of 39.5 times, the shares are currently negotiated. If the action reached $ 220 per share and returns to a level of evaluation of the profits of 60 times (I do not say that the evaluation is justified), this would require profit by action (EPS) $ 3.67.
In the past 12 months, Nvidia has generated $ 2.97 in BPA, which would only require 24% BPA growth to reach this brand. Since NVIDIA’s income should increase by 56% this year and that the average Wall Street analyst projects Nvidia will generate $ 4.50 in BPA this year, the price of $ 220 seems to be achievable.
However, the assessment of profits of 60 times is not durable. But an assessment of the 40 -time profits (current NVIDIA level) is, especially when you take into account the growth of the company. For Nvidia to reach an equity course of $ 220 with a profit price of 40 times, a BPA of $ 5.50 would take. This is a significant amount greater than the expected $ 4.50, but the same analysts expect a BPA of $ 5.72 during the year 2027.
So, will Nvidia’s actions reach $ 220 in the next year? I would say it will be difficult, but that wouldn’t surprise me. On the other hand, if you stretch your time horizon at two years old, I think that hitting $ 220 per share is easily achievable. This would result in a 90% yield over two years, which is exceptional. With the equity price fairly considerably compared to its heights, I am thinking at the moment represents an excellent opportunity to collect the actions of One of the largest winners on the market, who still has a lot of space to run.