Wells Fargo Hikes NVIDIA Price Target to $315 Ahead of Earnings: Is the AI King Still Cheap at 20x P/E?

"Wells Fargo is positive on the NVIDIA Q1 FY2027 set-up ahead of quarterly results and is raising estimates based on a new gigawatt-capacity-driven model. That methodology sizes the AI opportunity off total global data center power buildout, then back-solves to NVIDIA's revenue share. The firm acknowledges peak share and margin concerns, yet argues the favorable growth outlook should be bought. The core thesis: 2027 estimates aren't peak-cycle figures, they're durable."

"The price target raise lands just eight days before NVIDIA's quarterly report on May 20, with the firm arguing the stock still trades at less than 20 times price-to-earnings on what it views as durable 2027 consensus estimates. For prudent investors, the call frames a familiar debate: is the AI king still cheap, or are peak margins masking cycle risk? The answer could shape positioning ahead of the May 20 earnings report."

"NVIDIA carries a market capitalization of roughly $5.33 trillion, with CEO Jensen Huang recently receiving the IEEE Medal of Honor. Fiscal 2026 revenue reached $215.94 billion, up 65% year over year, with full-year EPS of $4.77. NVIDIA's fourth-quarter Data Center revenue hit $62.31 billion, while Data Center Networking surged 263% year over year. Management has guided Q1 FY2027 revenue to approximately $78 billion, explicitly excluding any China Data Center compute contribution."

"NVIDIA stock has climbed about 17% year to date and 77% over the past year, closing recently near $219. Shares trade at a trailing P/E ratio of 45x and a forward P/E ratio of 27x. The bull case rests on continued hyperscaler capex, and Wells Fargo's NVIDIA call suggests that the demand sustains the multiple. The bear case warns that competitive inroads fr"

Wells Fargo raised its NVIDIA price target to $315 from $265 and reiterated an Overweight rating. The update comes ahead of NVIDIA’s quarterly report on May 20. The firm argues the stock trades at less than 20 times price-to-earnings based on durable 2027 consensus estimates. Wells Fargo also raised estimates using a gigawatt-capacity-driven model that links global data center power buildout to NVIDIA’s revenue share. The firm acknowledges concerns about peak share and margins but expects favorable growth to persist. NVIDIA has reported strong revenue growth, with fiscal 2026 revenue of $215.94 billion and full-year EPS of $4.77, and it guided Q1 FY2027 revenue to about $78 billion excluding China data center compute contribution.

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