Wells Fargo has issued one of the most bullish calls on Nvidia on Wall Street. The bank raised its price target from $265 to $315, maintaining an overweight rating that implies roughly 44% upside from the stock’s closing price.
The thesis: AI spending is not slowing, and Nvidia is at the center of it all. Wells Fargo analysts see an AI infrastructure pipeline that could exceed $1 trillion by 2027, which they believe supports Nvidia’s earnings power for years.
The new target is based on a 21x multiple of Wells Fargo’s calendar year 2028 earnings per share estimate of $14.85. Nvidia currently trades at less than 20x on what Wells Fargo considers durable 2027 consensus estimates. Over the last three years, Nvidia’s median forward P/E has been around 32x.
The bank argues Wall Street is underpricing the durability of AI demand, treating Nvidia’s AI revenue as cyclical. Wells Fargo disagrees.
Analysts expect continued strong demand for Blackwell AI chips heading into Q2 of fiscal 2027. Beyond Blackwell, the report references the upcoming Vera architecture launch.
The timing is notable-it comes ahead of Nvidia’s earnings report, a key event that tends to validate or deflate the AI narrative each quarter.
When Wells Fargo projects the AI pipeline could surpass $1 trillion by 2027, it refers to total capital expenditure from hyperscalers, enterprises, and sovereign entities on data centers, networking gear, and GPUs.
Major cloud providers-Microsoft, Google, Amazon, Meta-have all signaled massive increases in AI capex. Nvidia has been the most direct beneficiary.