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

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While competitors AMD and Intel surged this year, Nvidia's stock performed relatively poorly. However, Wall Street interprets this as an undervalued period, emphasizing the possibility of further upside.

According to crypto-specialized media Watcher.Guru on July 3 (local time), Nvidia's stock closed at $197.58 on July 1, down 1.25% from the previous day, and below its 52-week high of $236.54. Wall Street's current 12-month average target price 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 (PER) ratio 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 significantly lagged behind its competitors. Nvidia rose only 4.4% since the beginning of the year, while AMD surged over 150% and Intel soared 256%. However, Sneha Nahata, an analyst at Barchart, commented, "While Nvidia has significantly underperformed its competitors, its current valuation is quite attractive considering the company's strong performance." Wall Street's average target price is aggregated at $301.92, showing a significant gap from the current stock price.

Earnings growth continues. Nvidia recorded $82 billion in revenue in Q1, an 85% increase year-over-year, with data center revenue growing 92% to $75 billion. Demand for the Blackwell platform, GB300, and NVL72 systems also remained strong, particularly from large cloud companies and cutting-edge AI developers. Jensen Huang, CEO, stated in his GTC keynote speech last March, "Demand for AI computing is far exceeding expectations, and we anticipate 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, lower than AMD's 84.84x and Intel's 202.55x. The company also provided Q2 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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