Nvidia Stock: Wall Street Sets Sights on $265 Target

Wall Street analysts are expressing strong confidence in Nvidia's prospects ahead of the company's highly anticipated quarterly earnings report. Among the most notable developments is a significant price target increase from Rick Schafer, a technology analyst recognized for his accurate market predictions. This optimistic adjustment reflects exploding demand for Nvidia's latest artificial intelligence chips, though investors await November 19th to see if the company can meet these elevated expectations.

Schafer of Oppenheimer has substantially raised his earnings forecasts for the coming three years. His analysis suggests Nvidia will generate over $150 billion in free cash flow during 2026, with potential to reach $200 billion by 2027. Concurrently, gross margins are projected to climb to an impressive 75% by year-end, demonstrating the company's pricing power in a high-demand market environment.

For the upcoming third-quarter results, Wall Street anticipates earnings per share will surge 54% to $1.25. Revenue is expected to jump 57% to $54.74 billion, aligning with Nvidia's own projection of approximately $54 billion.

Unprecedented Demand for AI Hardware

The analyst's revised $265 price target, increased from $225, comes amid overwhelming demand for Nvidia's new GB300 Ultra chips that substantially exceeds current supply. The NVL72 system has emerged as the preferred solution for major AI data centers, with large cloud providers currently installing approximately 1,000 racks weekly.

Should investors sell immediately? Or is it worth buying Nvidia?

CEO Jensen Huang recently revealed a staggering projection: the combined Blackwell and Rubin platforms could generate cumulative revenue reaching $500 billion by the end of 2026. This forecast highlights the extraordinary acceleration of AI spending across the industry, with Nvidia positioned at the epicenter of this expansion.

The company has already shipped 6 million Blackwell and Rubin chips and maintains a substantial order backlog of an additional 20 million units. Schafer anticipates Nvidia's data center division—the company's primary growth engine—will post 19% quarter-over-quarter growth in the third quarter.

Gaming Division Provides Additional Momentum

Beyond the cloud computing segment, Nvidia's gaming business is showing renewed strength. Improved availability of Blackwell RTX graphics cards is driving sales upward, while a new PC partnership with Intel could provide additional momentum to the consumer division.

Nvidia shares have already advanced approximately 44% this year. Wall Street sentiment remains overwhelmingly positive, with 37 buy recommendations contrasting with just one hold and one sell rating. The average price target among analysts stands at $238, making Schafer's $265 target the most optimistic projection. The November 19th earnings release will determine whether these expectations are justified.