After months of underperformance relative to the broader semiconductor sector, Wall Street is signaling renewed confidence in Nvidia (NASDAQ: NVDA), arguing that the stock’s recent stagnation has created a rare valuation opportunity heading into 2026.
Truist raised its price target on Nvidia to $275 from $255 and reiterated a Buy rating, citing sustained upside in artificial intelligence infrastructure spending.
Analyst William Stein rolled forward its estimates to 2027 and said AI semiconductors remain attractively priced relative to their long-term growth outlook, even as concerns around power availability and funding constraints persist.
Wall Street predicts Nvidia share price for 2026
At the same time, Bernstein reiterated its Outperform rating and maintained a $275 price target, pointing to what it described as “extreme valuation compression” despite Nvidia’s continued earnings momentum.
Nvidia shares closed at $174.14 on Thursday, and were trading around $175.87 in pre-market on Friday, up nearly 1%. Despite being up roughly 30% year-to-date, NVDA stock has lagged the broader semiconductor index, which is up about 38%, and has largely traded sideways since July.
According to Bernstein analyst Stacy A. Rasgon, that divergence has driven Nvidia’s forward price-to-earnings multiple down by approximately 27% over the year, leaving the NVDA shares trading just under 25x forward earnings. While that may not appear cheap in isolation, Rasgon noted that it places Nvidia in the 11th percentile of its own valuation range over the past decade.
The discount looks even more pronounced relative to peers. Bernstein estimates that Nvidia now trades at roughly a 13% discount to the SOX index, placing it in the first percentile of relative valuation over the last ten years. Rasgon said there have been only a handful of trading days in the past decade when Nvidia appeared cheaper on that basis.
The firm acknowledged recent investor anxiety around AI capital spending sustainability and competition between GPUs and alternative accelerators. However, Bernstein said capital expenditure plans remain intact, the GPU narrative is stabilizing, and upcoming catalysts such as CES, GTC, and the rollout of Rubin could help re-accelerate sentiment.
Nvidia chip shipments to China
In addition, Nvidia may see incremental upside from China. The Trump administration has launched a review that could allow initial shipments of Nvidia’s second-most powerful AI chips to China, potentially reopening a restricted but meaningful market.
With valuation near historical lows relative to growth, and multiple near-term catalysts on the horizon, Bernstein said the setup for Nvidia looks increasingly favorable heading into the new year. Truist echoed that view, framing current levels as an attractive entry point as AI infrastructure spending extends deeper into 2026.
