Prediction: Nvidia Stock Will Hit $300 Before 2026 Is Over

Nvidia (NASDAQ: NVDA) has been an OK stock pick this year. It has risen to about $225 per share, but I think it could notch $300 per share before 2026 is over. That's a rapid rise in just a few months, but after looking at the numbers, I think it's entirely possible and reasonable that Nvidia achieves this lofty stock price before 2027 arrives.

That would also make it an incredible buy now. With Nvidia's earnings announcement coming up on Aug. 26, now is the time for investors to strike.

Image source: The Motley Fool.

Nvidia's year-end success depends on the 2027 outlook

Nvidia makes GPUs and various hardware that support these computing units. The company's GPUs are widely considered the industry standard computing unit, and nearly every device that launches is compared to Nvidia's existing products.

However, Nvidia could change the game later this year when its Vera Rubin architecture is launched. This should cement Nvidia's place at the top and drive sales due to higher prices for the latest and greatest technology.

While Nvidia has done everything it can to ensure its products are at the top, what really matters is how much its clients are willing to spend. If AI hyperscalers suddenly decide not to spend hundreds of billions of dollars on capital expenditures, Nvidia's business is in jeopardy. However, that's not how things are trending.

Throughout 2026, the AI hyperscalers have continuously raised spending targets, and I expect that to continue through 2027. While some investors may argue that these firms are already spending all their cash flows, they're forgetting that the AI hyperscalers are building money-generating assets. These firms primarily make their money from cloud computing.

If you've checked on any results from the cloud computing providers, it's clear that their revenue and profits are exploding higher. This will unlock new cash to spend next year, which is why Nvidia has informed investors that it expects $1 trillion or more in data center capital expenditures from hyperscalers next year, up from $650 billion in 2026.

That's great news for Nvidia, as it secures another year of growth. Wall Street analysts back up this sentiment, projecting 43% revenue growth next year. As a result, I think there's plenty of room for Nvidia's stock to rally, as the market seems rather pessimistic about Nvidia's 2027 prospects despite all signs indicating another great year.

Nvidia's stock is far cheaper than it normally is at this time of year

Over the past two years, Nvidia's stock has traded for nearly 40 times forward earnings in August, then stayed relatively flat to end the year.

NVDA PE Ratio (Forward) data by YCharts

That's because the market is pricing in success for the next year, which hasn't happened yet. I think the market is a bit pessimistic about 2027's outlook, but as the hyperscalers start revealing 2027 spending plans, sentiment should reverse, sending Nvidia shares higher.

Should Nvidia rise to 35 times forward earnings by the end of the year, that would equate to a 40% gain in the stock price. If Nvidia's stock rises 40% to close out the year, that would result in a $315 stock price, easily clearing the $300 threshold we set out looking for.

Even if Nvidia falls short and only rallies half of that amount, that's still a strong performance to end 2026. I think this will all kick-start following Nvidia's earnings on Aug. 26. So if you haven't acted yet, now is the perfect time to load up on Nvidia shares, as it's one of the best values on the market right now.

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