The AI Trade Is Still On: Why Nvidia Remains at the Center of It

The AI Trade Is Still On: Why Nvidia Remains at the Center of It Vandita Jadeja Wed, July 29, 2026 at 5:00 PM GMT+2 4 min read NVDA AMD AVGO Quick Read NVDA earns a BUY rating with a $262. 81 price target, representing 27% upside, backed by $81. 6 billion in Q1 revenue, up 85% year over year.

NVDA trades at a P/E of 42 versus AMD's 196, while its $48. 5 billion quarterly free cash flow dwarfs both AMD and Broadcom. Even the bear scenario lands at $228, a 10% gain, supported by $119 billion in supply commitments and 75% gross margins.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now . The AI capex cycle keeps compounding, and NVIDIA ( NASDAQ:NVDA ) sits at the wheel.

My model sees room to run from here, even after a decade in which the stock returned 14,797. 5%. Shutterstock / Piotr Swat Our 24/7 Wall St.

price target for NVIDIA is $262. 81, pointing to 27. 06% upside from the current $206.

84 quote. The recommendation is buy, with high model confidence of 0. 9.

Earnings are growing faster than the multiple is compressing, and the platform moat is widening. 24/7 Wall St. Price Target Summary Metric Value Current Price $206.

84 24/7 Wall St. Price Target $262. 81 Upside 27.

06% Recommendation BUY Confidence Level 90% Where the Stock Sits Today NVIDIA is up 11. 04% year to date and 19. 21% over the past year, with the current $206.

84 quote sitting 28% below its $236. 26 52-week high. The Q1 FY27 report on May 20 was the fourth consecutive beat, with revenue of $81.

615 billion up 85. 23% YoY and non-GAAP EPS of $1. 87 clearing the $1.

7738 consensus. Data Center hit $75. 246 billion, with networking alone up 199% YoY.

Recent partnership headlines reinforce the sovereign-AI thesis. NVDA Earnings Explorer — 24/7 Wall St. The Bull Case Q2 FY27 guidance calls for revenue of $91 billion at a 75% gross margin, explicitly excluding China Data Center compute revenue.

Supply commitments of $119 billion signal demand runway well beyond current quarters. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now .

The board authorized an additional $80 billion buyback and lifted the quarterly dividend to $0. 25. Analyst consensus sits at $302.

83, with 58 buy ratings against a single sell. Our bull case fair value lands at $303. 16, a 46.

57% return. What Could Go Wrong The bear case starts with China. The H20 line generated $4.

6 billion a year ago and delivered zero this quarter. Concentration risk is real: hyperscalers make up roughly 50% of Data Center revenue. Insider activity has skewed toward selling.

Counter-argument: $119 billion in commitments and a 75% gross margin point to sustained demand well beyond a single-quarter window. Our bear scenario still lands at $228. 21, a 10.

33% gain. Story Continues NVDA Prediction Tug Of War — 24/7 Wall St. How NVIDIA Compares to AMD and Broadcom Advanced Micro Devices ( NASDAQ:AMD ) is the closest direct competitor on merchant GPUs and EPYC server CPUs.

AMD posted Q1 FY26 revenue of $10. 253 billion, up 37. 9%, with Data Center up 57%.

AMD trades at a P/E near 196 against NVIDIA's 42, so NVIDIA looks cheaper on trailing earnings despite its scale. Broadcom ( NASDAQ:AVGO ) is the custom-silicon and AI-networking counterweight. AVGO's Q2 FY26 AI semiconductor revenue hit $10.

80 billion, up 143%, and management guided Q3 AI to $16 billion. Broadcom's $1. 82 trillion market cap makes NVIDIA's $5 trillion cap look demanding, but NVIDIA's $48.

554 billion quarterly free cash flow dwarfs peer generation. The peer set makes our $262. 81 target reasonable.

NVDA Price Target — 24/7 Wall St. The Bottom Line The 24/7 Wall St. price target of $262.

81 stays a buy at high confidence. Free cash flow of nearly $50 billion in a quarter buys forgiveness on multiple compression. The setup rewards investors who tolerate a beta above 2 and want direct exposure to AI factory capex.

Caution is warranted if hyperscaler capex guides roll over into 2027 or a China escalation forces inventory writedowns. Extending the 24/7 Wall St. price target model forward using the base-case annualized return of 14.

97%, here is where NVDA could trade if the AI trade stays intact and margin structure holds near current levels. Year 24/7 Wall St. Price Target 2026 $238 2027 $273 2028 $314 2029 $361 2030 $415 These projections assume NVIDIA continues converting Blackwell and Vera Rubin demand into free cash flow at current margin levels.

Meaningful upside or downside could result from sovereign AI expansion, a full China Data Center reopening, or a hyperscaler capex reset. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now .

Contact editorial@247wallst. com for any questions or corrections.