In the ever-evolving landscape of artificial intelligence (AI) investments, Nvidia (NVDA) stands out as a major player reaping the benefits of the current boom. However, its stock’s prospects appear to be largely accounted for, with little room for significant upside, according to some experts. 

According to Seaport Research Partners’ senior analyst Jay Goldberg, the company’s Blackwell line has already sold out for the year due to packaging capacity constraints at Taiwan Semiconductor Manufacturing (TSM).

Additionally, the complexity of Nvidia’s systems presents significant hurdles in the supply chain, further complicating matters. Goldberg has highlighted the “growing pains” in AI adoption, as customers still search for viable use cases and ways to turn substantial investments into tangible returns.

While AI may not be a bubble, it could take years for its true value to emerge. As Goldberg pointed out, Nvidia’s growth could lag behind that of its peers this year. Seaport Research Partners has given NVDA a rare “Sell” rating, setting a price target of $100, signaling caution in loading up on the stock at this juncture.

With this backdrop, let us see if it seems wise to offload NVDA shares.

About Nvidia Stock

Nvidia (NVDA), headquartered in Santa Clara, California, is the undisputed leader in visual computing technologies. 

With a formidable market cap of $2.66 trillion, Nvidia has seamlessly transitioned from a company focused on PC graphics to one that pioneers AI-driven solutions. These innovations now serve high-performance computing (HPC), gaming, and virtual reality (VR) platforms, marking a significant evolution in its business model.

NVDA has witnessed considerable volatility since January, largely influenced by sector-specific dynamics and broader uncertainties surrounding U.S. trade tariffs. Year-to-date, the stock has faced a dip of 15%. Despite these fluctuations, NVDA’s performance over the past 52 weeks has been nothing short of impressive, with shares gaining 37%.

Currently, NVDA trades at 27.2 times forward-adjusted earnings and 20.4 times sales, reflecting a premium when compared to its peers. However, when pitted against its own five-year average multiples, the stock appears to be trading at a discount. The pricing discrepancy could present seasoned investors with a strategic window to enter before the market catches on to its potential.

Nvidia Surpasses Q4 Earnings

On Feb. 26, the company unveiled its fiscal 2025 fourth-quarter earnings report, which topped analysts’ consensus expectations. Revenue soared to a record-breaking $39.3 billion, brushing past its guidance of $38.1 billion and posting a 77.9% leap from the year before. 

Much of this meteoric rise was anchored in data center sales, which ballooned to $35.6 billion, nearly doubling year over year. The surge speaks volumes about Nvidia’s tight grip on the AI and cloud computing space, where its Blackwell AI semiconductor chips have become the gold standard amid a booming demand.

Yet not all that glitters is gold. The company faced pressure on margins. Gross margins narrowed to 73.5% from 76.7%, revealing the weight of rising costs and the urgent need for sharpening operational efficiencies. Still, Nvidia held its ground on profitability. Its adjusted EPS grew 71.2% from the year-ago value to $0.89 versus an expected $0.85.

Looking ahead, Nvidia management projects a strong first quarter for fiscal 2026 with anticipated revenue of $43 billion, plus or minus 2%. Analysts are also optimistic about the company’s earnings potential, with Q1 2026 EPS expected to rise by 41.4% year over year to $0.82. 

For the full fiscal 2026, analysts project EPS to grow by 36.9%, reaching $4.01, and the momentum is expected to carry into fiscal 2027, with an additional 25.9% year-over-year increase, pushing EPS to $5.05.

What Do Analysts Expect for Nvidia Stock?

As the curtains rise on the first half of 2025, trade dynamics and export controls continue to cast long shadows, yet the heartbeat of Nvidia’s core operations remains undeniably strong. Despite analysts reworking their forecasts, the average price target for the stock paints a picture of optimism, with ample headroom still in play.

Morgan Stanley analyst Joseph Moore recently shaved his price target down from $162 to $160. However, his long-term outlook remains bullish. Meanwhile, UBS holds its ground with a “Buy” rating and a bullish $180 price target, betting on NVDA’s resilience to outpace market headwinds.

The broader sentiment on Wall Street echoes confidence with an overall rating of “Strong Buy.” Of the 43 analysts tracking the stock, 37 are backing a “Strong Buy,” two suggest a “Moderate Buy,” and four prefer to stay on the fence with a “Hold.” 

The average price target of $166.10 represents potential upside of 46%, while the Street-high target of $220 signals a possible surge of 94% from current levels.