Analyst Sees Nvidia Hitting $400 in 18 Months, Calls Stock Cheap
New Street's Pierre Ferragu says NVDA is 'extremely cheap' and could surge 78% to $400+ within 18 months.
If you've been sleeping on Nvidia, one top analyst thinks you're making a costly mistake. New Street Research's Pierre Ferragu is calling NVDA "extremely cheap" right now and slapping a price target north of $400 on the stock — a move that would represent roughly a 78% rally from current levels within the next 18 months.
That kind of call doesn't come from a permabull on the fringe. Ferragu is a well-followed name in semiconductor analysis, and when he uses the word "cheap" for a stock that's already had a monster run, traders pay attention. The argument, at its core, is that the market still isn't pricing in the full scope of Nvidia's dominance in AI infrastructure spending.
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Think about what that target implies. An 18-month runway means this isn't just a short-term trade — it's a conviction hold. If Ferragu is right, buyers at today's prices are getting one of the most powerful AI plays on the market at a discount relative to where earnings power is headed. That's the bull thesis in a nutshell: the numbers will grow into the valuation, and then some.
Of course, a 78% return projection always comes with risk. Nvidia trades at premium multiples, competition is intensifying, and any slowdown in data center capex could pressure the stock hard. But when a respected analyst calls a mega-cap chip stock "extremely cheap," that's a signal worth putting on your radar — not ignoring.
Continue reading at Benzinga.
