Think NVIDIA's AI Boom Is Priced In? Analyst Says Wall Street Is Underestimating the Next 6 to 8 Quarters
Key takeaways
- NVIDIA’s expanded buyback and upbeat AI outlook hint that the market may still be underpricing the chipmaker’s growth trajectory.
- $6 trillion market cap
- 30% gain in 2026
- $150 billion added to buyback
What happened
NVIDIA’s board added $150 billion to its share‑repurchase authorization, bringing the total to about $235 billion through fiscal 2028. CEO Jensen Huang linked the move to the company’s strong cash generation and confidence in a broader "platform shift to AI and accelerated computing." Dan Ives told CNBC that Wall Street may be underestimating NVIDIA’s growth by 25‑30% over the next year, citing a supply‑demand gap of 13‑to‑1 (and 14‑to‑1) and accelerating enterprise AI adoption. NVDA shares…
Why it matters
The expanded buyback signals management’s confidence in long‑term AI demand and boosts the company’s cash position, potentially supporting higher share prices. Ives’ view that growth is underestimated suggests that current valuations may not fully reflect future earnings potential. The stark supply‑demand imbalance…
Short-term and longer-term
Short-term. In the short term, the buyback announcement and the new 52‑week high could spark short‑term volatility.
Longer-term. For investors, the expanded buyback and the projected 25‑30% growth underestimation point to a compelling long‑term case.