Nvidia’s Bullish Trajectory: Analyst Forecasts 47% Upside Potential

Nvidia shares could be poised for significant gains as market sentiment remains overwhelmingly positive. While some investors express concerns about a potential AI bubble, Melius Research analyst Ben Reitzes presents a compelling counter-narrative. He has substantially increased his price target to $275, suggesting substantial appreciation potential of 47% from current levels.

Strategic Investments Fuel Growth Narrative

The foundation for this optimistic assessment lies in Nvidia’s strategic positioning within the artificial intelligence ecosystem. The company is participating in Elon Musk’s xAI funding round, which aims to raise $20 billion, strengthening Nvidia’s influence across the AI landscape. This move complements existing substantial partnerships, including collaborations with OpenAI valued at $100 billion and a $6.3 billion arrangement with CoreWeave.

Some market observers have raised questions about circular financing dynamics, noting that Nvidia partners sometimes purchase chips using capital that originates from the company itself. However, Goldman Sachs analysts have provided context, indicating these transactions represent less than 15% of projected 2027 revenue. Simultaneously, Fujitsu has announced expanded cooperation with Nvidia to develop AI infrastructure solutions targeting healthcare, manufacturing, and robotics sectors, demonstrating broadening application of the company’s technology.

Dominance in AI Infrastructure Market

Reitzes projects that Nvidia could capture over 40% of the AI infrastructure market by 2030, representing approximately $800 billion in market share. The analyst has revised his data center growth projections upward to 44% annual growth through 2028, significantly exceeding the Wall Street consensus estimate of 37%.

Should investors sell immediately? Or is it worth buying Nvidia?

A potential catalyst for additional growth exists in the geopolitical landscape. Should U.S.-China relations improve, Nvidia could resume sales of its H20 and Blackwell chips to Chinese markets within one to two years, providing substantial incremental revenue opportunity.

Sustained Demand Despite Valuation Concerns

Despite ongoing discussions about AI sector valuations, fundamental demand indicators remain robust. Goldman Sachs portfolio manager Brook Dane continues to include Nvidia among top AI stock recommendations for institutional investors. The company benefits from multi-year infrastructure projects with major technology corporations, while its new Blackwell platform provides additional revenue diversification.

Upcoming quarterly earnings reports and management commentary regarding AI demand trends will offer critical insight into whether Reitzes’ bullish outlook will materialize. The company’s positioning at the center of AI infrastructure development suggests sustained momentum, though market participants will closely monitor execution against these elevated expectations.