Key Points

Nvidia maintains strong ties to the expanding AI infrastructure sector.
The chipmaker anticipates renewed major expansion taking shape in 2027.

Over an extended period, Nvidia (NASDAQ: NVDA) traded consistently above the $200 mark per share. Recent selling pressure has pushed it below that threshold once again. Shares have declined roughly 16 percent from peak levels and show only a 6 percent gain for the year. Such performance stands out as underwhelming given the robust gains Nvidia delivered to investors in prior years.

Even so, the outlook remains positive. The stock appears positioned for gains exceeding 50 percent to approach $300. Timing for such a move deserves closer examination.

Image source: Getty Images.

Nvidia holds leading position within its field

Latest concerns over artificial intelligence stem from worries about excessive spending. As investors question whether hyperscalers are overcommitting to infrastructure, related stocks face downward pressure.

Nvidia feels the effects of this sentiment, driving the recent decline. Yet hyperscalers have repeatedly assured markets that the greater danger lies in spending too little rather than too much. Despite frustration with elevated data center investments, plans show no signs of deceleration.

Management highlighted during the prior earnings call that hyperscaler outlays should surpass $1 trillion by 2027, following an expected $650 billion in 2026.

Such figures suggest continued revenue expansion, aligning with analyst forecasts. Growth of 82 percent is anticipated for the balance of this year, climbing to 41 percent in 2027. These rates support substantial earnings increases ahead.

Analysts project average earnings per share of $12.76 for fiscal 2028. This estimate may prove conservative, given the pattern of underestimating Nvidia results in the past.

Applying a 25 times earnings multiple to that projection yields a share price near $319 by the close of fiscal 2028. Consequently, a move to $300 appears feasible by late 2027.

This path offers around 50 percent upside over roughly 18 months. Much of the expected expansion rests on existing order visibility, supporting the case for purchase amid current weakness.

Evaluating a purchase of Nvidia shares today

Prior to acquiring Nvidia stock, review the following considerations.

The Motley Fool Stock Advisor team has highlighted 10 top stock ideas for the current environment, and Nvidia did not appear on that list. Those selected holdings hold potential for significant gains over coming years.

Historical examples include Netflix added on December 17, 2004, where a $1,000 investment grew substantially, and Nvidia itself recommended on April 15, 2005, delivering even larger returns.

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*Stock Advisor returns as of July 6, 2026.

Keithen Drury holds shares in Nvidia. The Motley Fool maintains positions in and endorses Nvidia. The Motley Fool maintains a disclosure policy.

The perspectives shared here belong to the author and may not align with those of Nasdaq, Inc.