Nvidia (NASDAQ:NVDA) and AI have turned out to be a match made in chip heaven. After all, the insatiable appetite for the Jensen Huang-led company’s offerings has made Nvidia the world’s most valuable firm. Yet, there have been murmurings on the Street that all the AI hype has driven the market into bubble territory.
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However, for Loop Capital analyst Ananda Baruah, the AI party is not only alive and well, but is about to kick up a gear, at least where Nvidia is concerned.
“Our work suggests we are entering the next ‘Golden Wave’ of Gen AI adoption and Nvidia is at the front-end of another material leg of stronger-than-anticipated demand,” said Baruah, who ranks among the top 5% of Street stock analysts.
Accordingly, Baruah assigns NVDA a Buy rating and raises his price target from $250 to a Street-high $350. Should the target be met, investors will be pocketing returns of ~75% a year from now. (To watch Baruah’s track record, click here)
“While we understand we’re suggesting 75% appreciation the next 4-5 Q’s… this is simply the result of our work,” the 5-star analyst went on to say.
Baruah’s confidence is based on an analysis that indicates Nvidia is entering a major GPU ramp that should nearly double its unit shipments over the next 12 to 15 months, driven by stronger ASPs and networking attach rates.
Nvidia is set to ramp GPU shipments from 1.1 million units per quarter, increasing by roughly 200 thousand units sequentially over the next five quarters, reaching about 2.1 million units per quarter by the January quarter (2027). This implies total GPU shipments of around 7.4 million units for calendar 2026 (fiscal 2027), compared with 4.7 million units for calendar 2025 (fiscal 2026). Nvidia is targeting GPU shipments of between 8 million and 10 million units for calendar 2027 (fiscal 2028).
The analyst sees “material upside” vs. Street estimates and sees Nvidia approaching $3.00 per quarter in earnings (Baruah is currently at $2.88 for the January quarter). Annualized, that equates to about $12.00 per share, and by applying Nvidia’s historical through-cycle P/E of 30x, Baruah thinks investors will support that take. The analyst also believes the company will still be going through its Blackwell cycle ramp a year from now, which investors are likely to reward. As the outlook for calendar 2027 becomes clearer, Baruah thinks the market will recognize that $400 is a realistic price target ($14.00 EPS at 30x P/E).
“Oh… and all of this is before software really kicks in,” the analyst added.
So, that’s a bull’s take and by no means the only one on offer right now. In fact, barring 1 Hold and Sell, each, all 36 other recent analyst reviews on NVDA are also positive, making the consensus view here a Strong Buy. Going by the $237.21 average target, in a year, the shares will be changing hands for a 19% premium. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.