Analyst Sees Nvidia Stock Hitting $400 Within 18 Months
New Street's Pierre Ferragu calls NVDA 'extremely cheap,' projecting a potential 78% rally to $400-plus over the next year and a half.
Nvidia's stock, already one of the defining equity stories of the AI era, may have significant room to run according to at least one prominent Wall Street voice. Pierre Ferragu of New Street Research has attached the label "extremely cheap" to shares of NVDA, a characterization that will strike some observers as counterintuitive given the chipmaker's already stratospheric valuation run over the past two years.
Ferragu's price target of $400-plus implies a gain of roughly 78% from current levels, to be realized within an 18-month window. That kind of forecast puts Nvidia in rarified territory even among mega-cap technology names, suggesting the analyst believes the market is still materially underpricing the company's earnings power relative to the structural demand for AI infrastructure it continues to supply.
Read more Analyst Sets $400 Nvidia Target, Calling NVDA 'Extremely Cheap' →
The bullish call reflects a broader debate playing out across institutional investing desks: whether Nvidia's forward multiples are justified by durable revenue growth or represent a speculative premium vulnerable to any slowdown in hyperscaler capital expenditure. Ferragu appears firmly in the former camp, framing the current entry point not as a risk but as an opportunity the market has not yet fully recognized.
For retail and institutional investors alike, the thesis hinges on sustained AI spending by cloud giants and enterprise customers, continued dominance in GPU architecture, and Nvidia's ability to extend its software moat through platforms like CUDA. Any deceleration in those dynamics could challenge the 18-month timeline, even if the long-term trajectory remains intact.
Continue reading at Benzinga.
