If you’ve been watching the ticker lately, you know the vibe around NVDA has shifted from "can this last?" to "how high can it actually go?" Honestly, it’s wild. Just when people start whispering about an AI bubble or "diminishing returns," another analyst drops a note that makes the old ceiling look like a basement floor.
We just saw a fresh Nvidia price target increase from heavy hitters like RBC Capital and Evercore ISI. They aren’t just nudging the numbers up; they’re basically screaming that the market is still underestimating what’s happening in Santa Clara.
Right now, the consensus is leaning heavily toward a "Strong Buy." We’re talking about an average price target hitting around $258, with some bulls like Evercore’s Mark Lipacis eyeing $352 by the end of the year. To put that in perspective, we’re looking at a world where Nvidia could become the first-ever $6 trillion company.
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Why the sudden jump in expectations?
It’s not just hype. It’s Blackwell. Or rather, it’s the fact that Blackwell—the chip everyone was worried might face delays—is ramping up faster than a caffeine-fueled developer on a deadline.
During the most recent earnings calls, CFO Colette Kress dropped a bit of a bombshell. She mentioned that demand for their AI products is actually surpassing their original $500 billion forecast. People are literally lining up with open checkbooks.
The "Rubin" Factor
While everyone is obsessed with Blackwell, the smart money is already looking at Rubin. Announced officially at CES 2026, this is Nvidia’s next-gen architecture. It’s named after Vera Rubin, the astronomer who discovered evidence of dark matter.
Appropriate, right? Because Nvidia’s growth seems to be fueled by a market force most people can’t even see yet.
- Vera CPUs: These are custom Olympus cores designed specifically for "agentic AI"—the kind of AI that doesn't just chat but actually does things.
- HBM4 Memory: Rubin is moving to the next level of high-bandwidth memory.
- 10x Cost Reduction: Jensen Huang is claiming Rubin will slash the cost of "generating tokens" (basically, AI thinking) to one-tenth of what it is today.
When you make AI ten times cheaper to run, the demand doesn't just grow. It explodes. That's the core thesis behind the latest Nvidia price target increase.
The Numbers Nobody Can Ignore
Let’s get into the weeds for a second. In the third quarter of fiscal 2026, Nvidia posted revenue of $57 billion. That is up 62% from a year ago.
Think about that. For a company this big to grow by 60%+ in a year is technically "bananas."
Data Center revenue specifically hit $51.2 billion. It’s the engine of the entire company. Meanwhile, the gaming side—which used to be the main event—brought in about $4.3 billion. It’s still growing, but it’s basically the side salad at this point.
Is the stock actually "cheap"?
This is where it gets counter-intuitive. Even with the price hovering near all-time highs, some analysts argue the stock is actually a bargain.
Currently, Nvidia is trading at roughly 24 to 25 times forward earnings. For a company growing this fast, that’s actually lower than some of its peers in the "Magnificent Seven." Compare that to the broader tech-heavy indexes, and you realize you aren't paying as much of a "growth premium" as you might think.
The Skeptics Are Still There (And They Might Have a Point)
It wouldn't be a fair look if we didn't talk about the bears.
There is a small but vocal group—about 3% of analysts—who are still waving the "Sell" flag. Their concern? Capital utilization. They’ve noticed that Nvidia’s return on capital dipped slightly from 116% to about 102%.
"Only 102%?" you might ask. Yeah, it sounds like a champagne problem, but in the world of high-stakes finance, a downward trend in efficiency can be a canary in the coal mine. There’s also the "circular deal" worry. Nvidia is investing in companies like OpenAI and Anthropic, who then turn around and buy Nvidia chips. Some folks worry this creates an artificial feedback loop of demand.
What it means for your portfolio
If you're holding NVDA, or thinking about it, the takeaway from the recent Nvidia price target increase is pretty clear: the "AI trade" has moved from the training phase to the inference phase.
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Earlier, companies were buying chips to build models. Now, they are buying chips to run them for millions of users. That’s a much bigger market. With the Rubin platform hitting mass production in the second half of 2026, the roadmap for the next 18 months looks incredibly solid.
Real-world signals to watch:
- The China Comeback: Rumors are swirling that Chinese tech firms have ordered over 2 million H200 chips for 2026. If the export restrictions loosen even slightly, that’s a $40 billion revenue stream that was previously dead.
- The Stargate Project: Nvidia is the key partner for this $500 billion AI supercomputer project. It’s a multi-year build that provides a massive floor for their revenue.
- Gross Margins: Keep an eye on that 75% mark. If they can keep margins that high while ramping up new chips, the earnings per share (EPS) will continue to blow past expectations.
Basically, the analysts aren't just throwing darts at a board. They're looking at a supply chain that is booked out through 2027 and realizing that Nvidia isn't just a chip company anymore—it's the utility company for the entire AI economy.
Actionable Next Steps
If you're looking to act on this info, don't just chase the green candles.
Check your exposure. If Nvidia has grown to be 20% of your portfolio because of the recent run, it might be time to rebalance, even if you’re a long-term bull. But if you're looking for an entry, many traders are watching the $185-$190 support levels.
Watch the upcoming Q4 earnings report in February. Management usually gives guidance for the full fiscal year then. If they raise their revenue outlook toward that $213 billion annual mark that Wall Street is whispering about, expect another wave of price target hikes to follow.
Stay objective, watch the margins, and don't get blinded by the $6 trillion headline. The tech is real, but the volatility is, too.