NVIDIA Hits $96B Revenue: Can it Surge 79% to $400 by 2027?

Key Takeaways

NVIDIA reported Q2 fiscal 2027 revenue of $96.22 billion, up 105.8% year-over-year, largely driven by Data Center sales.
Analysts project an average price target of $328.72, implying 47% upside, supported by 46 upward EPS revisions in 90 days.
Key catalysts like the Vera Rubin platform ramp, surging hyperscaler capital expenditure, and significant share buybacks could propel the stock to $400 by 2027.

Jensen Huang, chief executive of NVIDIA (NASDAQ:NVDA), has encapsulated the current market moment, stating, "AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue." This declaration is backed by the company’s latest financial figures, released in mid-October 2026. NVIDIA posted second-quarter fiscal 2027 revenue of $96.22 billion, a 105.8% increase year-over-year. The Data Center segment was a primary growth engine, with sales rising 117% to $89.02 billion. Despite shares climbing 20.15% year-to-date to $223.55, and a staggering 932.51% over five years, earnings growth continues to outpace the stock price, suggesting potential for further revaluation.

NVIDIA’s Q2 FY27 Growth Surpasses Expectations

The substantial revenue growth of 105.8% year-over-year to $96.22 billion reflects robust demand across NVIDIA’s core markets. Data Center sales, the company’s largest segment, saw an even more dramatic increase of 117% to $89.02 billion. This performance has fueled analyst optimism, with consensus EPS for fiscal 2028 now at $15.9146, a notable increase from $12.7102 just 90 days prior. Over the last 30 days, analysts have issued 46 upward EPS revisions and zero downward adjustments, indicating strong positive sentiment. NVIDIA has also consistently exceeded EPS estimates for six consecutive quarters, most recently reporting $2.22 against an expected $2.0887.

Could NVIDIA Stock be Set for a Run Towards $400 by 2027?

Wall Street analysts currently project an average price target of $328.72 for NVIDIA, which implies an upside of approximately 47% from its current levels. Coverage includes 10 Strong Buy and 49 Buy ratings, with only one Sell rating. The investment thesis for a higher valuation stems from NVIDIA’s current trading multiple; at $223.55 per share, the stock trades at roughly 14 times its fiscal 2028 earnings estimates. This is cheaper than the average S&P 500 stock, which typically trades at approximately 21 to 23 times forward earnings, despite NVIDIA’s significantly faster growth trajectory. To reach a $400 share price, NVIDIA would need to trade at about 25 times its fiscal 2028 earnings, which represents a modest premium for a business forecasted to achieve roughly 71% EPS growth.

Analyst Perspective & Market Impact

NVIDIA’s current valuation, trading below the S&P 500 average despite superior growth, presents a compelling scenario for revaluation. The consistent upward revision of EPS estimates and the unanimous positive analyst sentiment suggest that market expectations might still be lagging behind the company’s operational execution. While some investment reports, such as a recent ‘Top 10 Stocks To Buy Now’ from 24/7 Wall St., excluded NVIDIA, the underlying data points to robust fundamentals and strong future demand. The key tension lies in whether the market will re-rate the stock to a premium multiple commensurate with its growth prospects, especially as actual results frequently exceed analyst forecasts.

Key Catalysts for Sustained Outperformance

Several factors could provide the impetus for NVIDIA to achieve more aggressive price targets:

Vera Rubin’s Rapid Adoption: Purchase orders for the new Vera Rubin platform have reportedly arrived from "every major hyperscaler, AI cloud, and system OEM." Management expects this to be the fastest product ramp in NVIDIA’s history. Each gigawatt of Vera Rubin processing power represents a $40 billion revenue opportunity, compared to $25 billion for the Blackwell platform.
Surging Hyperscaler Spending: Capital expenditure by the top five hyperscalers is forecast to increase from nearly $800 billion in 2026 to $1.3 trillion in 2027. This significant spending surge is largely directed towards AI infrastructure, directly benefiting NVIDIA.
Major Client Commitments: Key deals are already in place, including AWS deploying an additional 2 million GPUs. OpenAI has also committed to approximately 12 gigawatts of NVIDIA computing power.
Aggressive Share Buybacks: NVIDIA returned $26 billion to shareholders last quarter and retains about $99 billion remaining under its current buyback authorization, providing ongoing support for share price.

Potential Headwinds and Operational Challenges

Despite the strong tailwinds, NVIDIA faces certain operational hurdles. Memory costs are a concern, with potential to compress gross margins down to a 71% to 72% low. Additionally, the company’s outlook currently excludes any China data center revenue, which could be a material factor if geopolitical tensions ease or restrictions change. Supply chain tightness is also expected to persist through fiscal 2028, potentially limiting the company’s ability to fully meet surging demand, even with a rapid product ramp like Vera Rubin’s.

Metric	NVIDIA (FY28 Est.)	S&P 500 Average (Forward)
Forward P/E Multiple	14x	21-23x
Projected EPS Growth	~71%	~10-12% (Estimate)
Target P/E for $400 Share Price	~25x	N/A

With NVIDIA’s stock trading at a market capitalization of approximately $5.395 trillion, can its unprecedented growth rates and demand translate into a 79% gain to reach $400 in 2027? The question for investors is whether the current earnings multiple provides a significant opportunity given the robust pipeline and analyst revisions, or if the challenges of margin compression and supply constraints will temper expectations for such outsized returns.