Nvidia (NVDA) Stock: Analyst Projects 55% Rally Despite Recent Pullback

Key Takeaways

• Cantor Fitzgerald maintains Buy recommendation on NVDA with $350 target price, suggesting 55% potential gain
• Shares declined 2.1% Tuesday amid broader market pressure from Middle East-related oil price increases
• Second quarter FY27 revenue reached $96.22 billion, a 105.9% year-over-year jump, surpassing forecasts
• Consensus among Wall Street analysts shows Strong Buy rating with $325.23 average target, indicating 44.1% potential upside
• Board member Mark Stevens offloaded more than 1 million shares valued at approximately $235.6 million in early September

Shares of Nvidia declined 2.1% during Tuesday’s trading session, settling near $225.73 by Wednesday’s market open. The pullback came as escalating tensions in the Middle East pushed oil prices higher, creating a headwind for equity markets that weighed on NVDA alongside other stocks.

NVIDIA Corporation, NVDA

The decline didn’t shake Cantor Fitzgerald analyst C.J. Muse’s conviction. He maintained his Buy recommendation on NVDA while keeping his $350 price objective intact. This target represents approximately 55% upside potential from Tuesday’s closing price. According to TipRanks data, Muse holds the No. 9 position among over 12,500 tracked analysts, boasting a 72% accuracy rate and delivering an impressive 78.1% average return per recommendation across a one-year period.

Muse’s investment thesis centers on a straightforward premise: demand for AI infrastructure continues accelerating. His analysis indicates Nvidia trades at the most attractive valuation multiple among computing stocks when measured against 2028 earnings per share projections. Additionally, he observed that both hedge funds and traditional long-only investment managers remain under-allocated to NVDA, presenting an opportunity for increased institutional accumulation.

Quarterly Results Support Optimistic Outlook

Nvidia unveiled its Q2 FY27 financial performance on August 26th. The company posted revenue of $96.22 billion, representing a 105.9% increase compared to the same period last year and exceeding Wall Street’s $92.27 billion projection. Earnings per share reached $2.22, beating the consensus estimate of $2.09 by $0.13.

The chipmaker achieved a net profit margin of 63.66% and delivered return on equity of 96.04%. Company leadership reiterated guidance calling for approximately 70% revenue expansion throughout fiscal 2028.

Following an earnings discussion with Nvidia’s investor relations division, BMO Capital analyst Harsh Kumar also maintained his Buy recommendation on NVDA with a $340 price objective. He highlighted that same 70% growth projection as a primary driver of his positive stance.

Recent Insider Transaction Activity

Not all signals point upward. Board member Mark Stevens disposed of over 1.02 million NVDA shares during September 3rd through 4th, generating proceeds of roughly $235.6 million and reducing his direct stake by approximately one-third.

Collectively, company insiders have sold around 2.59 million NVDA shares totaling about $571 million during the previous three months. These transactions occurred through pre-established Rule 10b5-1 trading arrangements, which are set up ahead of time and don’t necessarily signal bearish sentiment about the company’s immediate prospects.

From an institutional perspective, 65.27% of NVDA’s outstanding shares are controlled by institutional investors. TriaGen Wealth Management expanded its holdings by 23.4% during Q2, purchasing 9,412 additional shares to bring its total position to 49,597 shares valued at approximately $9.9 million.

The Street’s aggregate view on NVDA stands at Strong Buy, supported by 29 Buy recommendations with zero Hold or Sell ratings. The mean price target of $325.23 suggests 44.1% potential appreciation. The stock has climbed more than 21% since the beginning of the year.

Nvidia has also announced a quarterly cash dividend of $0.25 per share, scheduled for distribution on October 1st to investors on record as of September 10th. The company’s $80 billion share repurchase authorization, unveiled in May, continues to be in effect.