Nvidia (NVDA) stock has pulled back from recent highs, but one Wall Street firm believes the long-term story is far from over. It is hardly surprising that Tigress Financial is growing even more confident in Nvidia. The firm recently lifted its price target on NVDA stock to $360 from $350 and reiterated its “Strong Buy” rating, pointing to the company’s dominant position in AI data center infrastructure.
This new target price, which is also the highest estimate, indicates a potential upside of 96% from current levels. NVDA stock is down 2.6% year-to-date (YTD) and down 14% from its 52-week high, making the recent dip a potential buying opportunity.
Nvidia Is Just Not a Random AI Stock
Nvidia is not just another company riding the AI wave. It provides the core infrastructure, including the chips, networking systems, and software ecosystem that power the AI revolution. Whether it is generative AI, autonomous systems, robotics, or data center acceleration, Nvidia sits at the heart of the computing layer. That positioning gives Nvidia pricing power, scale advantages, and strong ties with major cloud providers and AI model developers.
According to Tigress, Nvidia’s leadership in powering the AI revolution is resulting in sustained revenue growth, increased cash flow, improved profitability, and ongoing value creation for shareholders. In the most recent fourth quarter of fiscal 2026, Nvidia reported total revenue of $68.1 billion, an increase of 73% year-over-year (YoY), and an adjusted earnings increase of 82%. Data center revenue alone contributed 91% to total revenue and increased 75% YoY. The company added $11 billion in data center revenue sequentially.
Notably, Grace Blackwell systems generated about two-thirds of data center revenue in Q4. Full-year numbers were even more spectacular. Total data center revenue surged to $194 billion, up 68% YoY. Nvidia’s revenue has grown at a staggering rate from just $5 billion in fiscal 2016 to $215.9 billion in fiscal 2026. Adjusted earnings grew 60% in the year to $4.77 per share. Gross margins remained strong at around 70%, indicating pricing power and operational leverage.
Furthermore, since the launch of ChatGPT in fiscal 2023, Nvidia has scaled its data center business nearly 13-fold. That kind of expansion reflects not only cyclical demand but also a structural platform shift in the computing landscape. Demand for Nvidia's Blackwell architecture continues to rise as inference deployments and training workloads increase.
Management emphasized that “NVIDIA produces the lowest cost per token and data centers running on NVIDIA generate the highest revenues.” The company’s networking business also generated $11 billion in revenue in Q4, up more than 3.5x YoY, led by strong adoption of NVLink, Spectrum-X Ethernet, and InfiniBand technologies.
Why Wall Street Still Sees Massive Upside in NVDA Stock
Nvidia is aggressively investing in R&D, nearing $20 billion per year, to support extreme co-design across chips, systems, networking, algorithms, and software. In addition, Nvidia’s sovereign AI segment expanded more than threefold in fiscal 2026, surpassing $30 billion in revenue, driven by growing demand from government-backed initiatives in Canada, France, the Netherlands, Singapore, and the United Kingdom. Management anticipates that sovereign AI investment will eventually rise in pace with the entire AI infrastructure industry. This full-stack AI infrastructure strategy and diversification across hyperscalers, enterprises, and governments are likely the factors behind Wall Street’s long-term confidence.
Despite massive investments, Nvidia’s free cash flow (FCF) balance of $97 billion for fiscal 2026 is impressive. That allowed the company to return $41 billion, or 43% of FCF, to shareholders through share repurchases and dividends
Nvidia is expected to report 72.9% earnings growth in fiscal 2027 and another 30.2% in fiscal 2028, according to consensus estimates. Even with that growth trajectory, the stock trades at around 24× forward fiscal 2027 earnings. Compared to its growth rate and leadership in AI chips, Nvidia’s current valuation may appear more reasonable than many investors assume.
No doubt, like most high-growth tech stocks, Nvidia stock remains sensitive to market rotations, valuation concerns, or supply constraints. Nonetheless, its scale, ecosystem strength, and first-mover advantage create a durable moat.
Overall, NVDA stock remains a “Strong Buy” on Wall Street. Out of the 49 analysts covering the stock, 44 have a “Strong Buy” recommendation, three rate it a “Moderate Buy,” one rates it a “Hold,” and one says it is a “Strong Sell.” The mean target price for the stock is $264.80, which implies an upside of 44% from current levels.
It is important to note that Tigress Financial's new price target is not yet reflected in Barchart's analyst coverage data.
The Bottom Line
While some investors grow cautious when a stock starts pulling back, others view volatility as part of long-term wealth building. Most AI stocks are facing the pressure of a market rotation. However, the broader AI infrastructure sector is still in its early phases.
Simply put, Tigress Financial’s bullish stance suggests that the long-term thesis for Nvidia remains intact. If Nvidia maintains its competitive edge, today’s pullback could look far less significant ten years down the line.
On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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