Nvidia Stock Price Prediction: Will NVDA Reach $490 by 2027?

Nvidia Outperforms the S&P 500 on AI Demand

Nvidia stock has returned to outperforming the broader market, climbing 24% year to date compared to a 14% gain for the S&P 500, according to market data. Investors continue to scrutinize whether the chipmaker can maintain that momentum.

The company delivered 106% sales growth in its fiscal second-quarter 2027 report, blasting past both internal guidance and external estimates. Artificial intelligence development is expanding at rapid rates, and Nvidia’s graphics processing units remain a critical foundation for that work.

Revenue Projections and Valuation Math for 2027

Wall Street expects Nvidia revenue to increase 80% this year and 63% next year. During the second-quarter earnings call, CFO Colette Kress stated that Nvidia expects to grow 70% next fiscal year, which maps to fiscal 2028.

Combining Wall Street’s estimate for fiscal 2027 with management’s guidance for fiscal 2028 puts total company revenue at $699.3 billion by the end of 2027. Applying a price-to-sales ratio of 17—down from today’s ratio of 19—would bring Nvidia to a market capitalization of $11.9 trillion. That represents a 113% increase from current levels, pushing the stock to $490 per share. At a lower price-to-sales ratio of 15, the market cap would land near $10.5 trillion, marking an 89% increase.

Expanding the AI Ecosystem Through Deals and Investments

To defend its market position, Nvidia is launching more powerful processors and expanding its stake in artificial intelligence by rolling out hardware and software that integrate tightly with its ecosystem, creating high barriers to entry for competitors.

The company is actively acquiring smaller businesses and funding key AI players. Nvidia announced plans to acquire AI platform Hugging Face for $12.9 billion and invested $2 billion in CoreWeave this year, adding to earlier funding rounds. These moves widen the company’s addressable market and accelerate top-line revenue growth.

Risks and Downside Scenarios

Despite robust growth forecasts over the next two years, market participants remain cautious about rising competition, external AI developments, and potential deceleration. The stock’s price-to-sales ratio continues to trend downward.

While Nvidia shares usually spike following earnings reports when revenue jumps, the stock may gain much more modestly—or decline—if growth slows and valuation multiples compress further over the next 12 to 18 months.

Frequently Asked Questions

What is the projected price for Nvidia stock by the end of 2027?

Projections based on Wall Street estimates and management guidance suggest Nvidia stock could reach $490 by the end of 2027 if revenue hits $699.3 billion and the price-to-sales ratio holds around 17.

How fast is Nvidia’s revenue growing?

Nvidia reported 106% sales growth in its fiscal second-quarter 2027. Wall Street models project 80% revenue growth for the current year, while CFO Colette Kress guided for 70% growth next fiscal year.

What major investments has Nvidia made recently?

Nvidia announced the $12.9 billion acquisition of AI platform Hugging Face and invested $2 billion in CoreWeave this year, building on previous funding rounds.

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