Nvidia Stock Is Below $200 Per Share Again. Here's When It Could Hit $300.

For a long time, Nvidia (NASDAQ: NVDA) was priced above $200 per share. Now, it has fallen below that after a few days of heavy selling pressure. The stock is down around 16% from its highs and is up a mere 6% for the year. That's a pretty disappointing result for most investors since Nvidia has been such a strong stock pick over the past few years.

However, I still think the stock still has a bright future. In fact, I think it could easily rise over 50% to reach $300. But when might that occur? Let's take a look.

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Nvidia is still the dominant force in the industry

The most recent round of artificial intelligence (AI) sell-offs has come from a familiar source: fear of overspending. As the market becomes worried that AI hyperscalers are spending too much on their buildout, any stock associated with the industry is struggling.

Nvidia is not isolated from that, which is why it has sold off so much. However, time and time again, the hyperscalers have told investors that the risk of underspending far outweighs the risk of overspending. The market may be growing frustrated by lofty capital expenditures on data centers, but the hyperscalers aren't planning on slowing down anytime soon.

During its last quarterly conference call, management forecast that it expects hyperscaler spending to top $1 trillion in 2027 after reaching a projected $650 billion in 2026.

That sounds like further revenue growth ahead, and that's exactly what Wall Street analysts are projecting as well. For the rest of this year, they expect 82% growth. For 2027, that figure rises to 41%. Those are strong growth rates and will likely lead to major profits as well.

For fiscal 2028, ending January 2028, the average analyst projects $12.76 in earnings per share. I think that's a conservative estimate, because the analyst community has consistently underprojected Nvidia's growth.

If we use that figure and value the stock at a reasonable earnings multiple of 25, the projected share price at the end of fiscal 2028 is $319. As a result, I think the stock could easily reach $300 per share sometime in late 2027.

That's 50% upside in about a year and a half, which is a great return in a short time frame. Furthermore, most of this growth is already known because management likely has good information on customer orders over the next year. So I think Nvidia is an excellent buy on this most recent round of sell-offs.

Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.