Can Nvidia stock really hit $333 in September 2027?

Nvidia (NASDAQ: NVDA) stock is no longer going gangbusters. While it’s up around 900% over five years, it’s climbed just 28% in the last 12 months. Is this the end of the decade’s biggest S&P 500 growth story? Let’s see.

Despite that stunning run, Nvidia isn’t that expensive. Its trailing price-to-earnings ratio is around 29, while the forward P/E is about 25.

That looks pretty good to me, but I’ve also been comparing it with semiconductor rivals Advanced Micro Devices and Broadcom, and manufacturing partner Taiwan Semiconductor Manufacturing Company and Nvidia comes out pretty well.

Nvidia’s delivering

Nvidia trades at a notable discount to AMD and Broadcom on both measures, and is slightly cheaper than TSMC on a forward basis. That’s because earnings have been running red hot, while the share price has cooled.

Second-quarter net income rocketed 126% to $59.7bn year-on-year, around 4.5 times faster than the stock. When that happens, the valuation multiple shrinks. This time last year, investors were pricing in massive future earnings growth. Nvidia has delivered it, driving down the P/E.

So why has the share price stalled? In part, it reflects investor nervousness. We’re all worried about the potential AI bubble. Even optimists expect some kind of correction in such a breakneck growth area. Others wonder what happens once data centre infrastructure is largely built. Will demand for Nvidia’s chips fall off a cliff?

Potential risks and rewards

I can see reasons to be optimistic. Nobody can simply wish AI away, however much they’d like to. Microsoft, Alphabet, Meta and Amazon continue to pour fortunes into data centres. If Wall Street convinces itself that AI infrastructure will rattle along for another four or five years, I can see that P/E multiple expanding again.

Nvidia also doesn’t just sell hardware, its CUDA software ecosystem is deeply embedded in AI development, giving it a powerful competitive advantage.

Yet at some point, AI investment must plateau. If the expected productivity improvements and profits don’t come, that could be sooner rather than later. In that scenario, Nvidia shares could plunge.

Nvidia also relies heavily on TSMC to manufacture its most advanced processors, with much of that production in Taiwan. A major supply chain disruption, or heaven forbid including Chinese aggression, could wreak havoc.

The biggest potential threat comes from Nvidia’s own customers, as Google, Amazon and Meta develop more chips in-house. You can’t blame them.

Could Nvidia hit $333?

So what do the experts say? With 61 analysts providing one-year share-price forecasts, there’s a massive range of outcomes. The lowest estimate is $180 and the highest $710, while the average is $333. That would represent a gain of roughly 45% from Nvidia’s current level. I’d take that.

In the past three months, 72 analysts have supplied stock ratings. Of these, a whopping 62 called Nvidia a Strong Buy. Another seven said Buy. Only one said Sell.

Despite the risks, I think Nvidia shares remain well worth considering today. But investors who have had enough US tech exposure might fancy this instead…

What growth stock do we like better than Nvidia right now?

One of our Share Advisor analysts has just released a brand new stock report that we think is a must-read for any investor looking to try and generate potential growth.

And the best bit is that you can see if for yourself, right now, absolutely free of charge!

No jargon. No hard sell. Just a clear look at a growth share idea we think is worth your time.

Harvey Jones owns shares in Nvidia.