New Street Research analyst Pierre Ferragu forecasts a $400 share price for Nvidia. Ferragu expects the stock to reach this level within 18 months. This target represents a potential 78% upside from current market levels.
Ferragu told CNBC the stock remains extremely cheap based on long-term forward earnings. The analyst argues that investors undervalue Nvidia's earnings power and the scale of global AI adoption.
CEO Jensen Huang projects at least 70% business growth for the upcoming year. Ferragu suggests Nvidia trades at a single-digit multiple relative to its projected 2028 earnings.