Is Nvidia Undervalued Even After AMD's 150% and Intel's 256% Surge? Wall Street Notes "54% Upside Potential"

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While competitor AMD and Intel surged this year, Nvidia's stock performed relatively poorly. However, Wall Street interprets this as an undervalued period and is betting on further upside potential.

According to cryptocurrency media Watcher.Guru on July 3 (local time), Nvidia's stock price closed at $197.58 on July 1, down 1.25% from the previous day, and is below its 52-week high of $236.54. The current 12-month average target price on Wall Street is approximately $305, reflecting an upside potential of about 54% compared to the current stock price. The company's market capitalization is $4.78 trillion, and its price-to-earnings ratio (PER) is 30.26x. Over 90% of brokerage firms providing coverage maintain a 'Buy' or 'Strong Buy' rating. Target prices range from a low of $180 to a high of $500.

Looking solely at this year's stock performance, Nvidia has significantly lagged behind its competitors. Nvidia has risen by only 4.4% since the beginning of the year, while AMD has surged over 150% and Intel by 256%. However, Sneha Nahata, an analyst at Barchart, commented, "While Nvidia has significantly underperformed its competitors, its current valuation is quite attractive given the company's strong performance." Wall Street's average target price is estimated at $301.92, showing a significant gap from the current stock price.

Performance growth continues. Nvidia recorded first-quarter revenue of $82 billion, an 85% increase year-over-year, with data center segment revenue growing 92% to $75 billion. Demand for the Blackwell platform, GB300, and NVL72 systems also remained strong, primarily from large cloud companies and cutting-edge AI developers. Jensen Huang, CEO, stated in his GTC keynote address last March, "AI computing demand is far exceeding expectations, and we expect the market size to reach at least $1 trillion by 2027. Actual demand could be even greater, and we are preparing for a situation where supply cannot keep up with demand."

The company expects its new Vera CPU platform to generate approximately $20 billion in revenue this year, and based on this, net income for fiscal year 2027 is projected to grow by 90.2%. Nvidia's current forward price-to-earnings ratio is approximately 22.15x, which is lower than AMD's 84.84x and Intel's 202.55x. Additionally, the company provided second-quarter revenue guidance of $91 billion, signaling 15 consecutive quarters of growth, and announced an $80 billion share buyback program and an increase in quarterly dividends. The media reported that Wall Street's positive outlook on Nvidia is maintained based on these results and valuations.

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