• Wells Fargo increases Nvidia price target to $265 from $220, maintaining Overweight rating
  • Analyst Aaron Rakers raises FY27-FY28 estimates on stronger hyperscale capex and data center momentum
  • New models project revenue reaching $383 billion by FY28, with data center sales driving most growth

Wells Fargo has lifted its price target on Nvidia to $265 from $220, maintaining an Overweight rating on the semiconductor giant in a move that signals continued confidence in the AI infrastructure buildout. The adjustment, announced Thursday by analyst Aaron Rakers, comes ahead of Nvidia's quarterly earnings and reflects increased estimates for fiscal years 2027 through 2028.

Rakers now models revenue of $209 billion for FY26, $302 billion for FY27, and $383 billion for FY28, with data center sales expected to drive the majority of this expansion. The analyst's revised outlook cites stronger hyperscale capital expenditure and sustained momentum in artificial intelligence and data center markets as key drivers.

"The supply ramp and strong demand visibility through 2026 and beyond support a roughly 30x CY27 price-to-earnings multiple," Rakers noted in his research report. He added that upside earnings per share could potentially reach $9 per share, suggesting further room for growth beyond current consensus estimates.

Wells Fargo's new $265 target positions the firm above the current analyst consensus range of $222.23 to $227.92 but well below the most bullish Wall Street outlook of $350 from Loop Capital. The upgrade reflects moderate optimism within the broader analyst community, where 40 analysts maintain buy ratings and only one recommends selling the stock out of 48 covering the company.

Nvidia's market capitalization of approximately $4.38 trillion makes it one of the most valuable technology companies globally, with its dominance in AI chips establishing it as a cornerstone of the artificial intelligence infrastructure expansion. The company's graphics processing units and AI accelerators have become essential components for hyperscale companies investing heavily in data center capacity to support large language models and generative AI applications.

Efforts to reach Nvidia for comment on the Wells Fargo upgrade were not immediately successful. The company typically refrains from commenting on individual analyst ratings ahead of earnings releases.

Trading activity in Nvidia shares remained active following the announcement, with the stock having recovered substantially from its 12-month low of approximately $86.62. The implied upside from current levels ranges between 19.31% and 29.42%, according to consensus estimates compiled from Wall Street analysts.

The timing of Wells Fargo's adjustment suggests the firm sees near-term catalysts in Nvidia's upcoming quarterly results, which may validate the revenue growth assumptions underpinning the revised price target. Multiple analyst firms have recently adjusted their outlooks on Nvidia upward, indicating a coordinated shift in sentiment as visibility into 2026-2027 demand improves across the semiconductor sector.