Source: Tony Dante
RBC Capital’s Optimistic Price Target for NVIDIA
On February 26, 2026, Srini Pajjuri from RBC Capital set a bullish price target of $250 for NVIDIA Corporation (NASDAQ: NVDA), a leading player in the technology sector, renowned for its graphics processing units (GPUs) and artificial intelligence (AI) processors. This price target suggests a potential upside of 34.97% from its then trading price of $185.23.
RBC Capital’s optimistic outlook on NVDA comes even though the stock price already reflects a slowdown in AI spending. This projection is a clear indication of the financial institution’s confidence in NVIDIA’s ability to deliver robust performance, despite the current market volatility and competition from rivals like AMD and Intel in the semiconductor space.
NVIDIA’s Fiscal Q4 Performance – A Strong Stand Amidst Global Gaming Chip Shortage
Despite facing a global shortage of gaming chips, NVIDIA’s fiscal Q4 performance was impressive, largely driven by robust demand in the data center sector. The company managed to see significant revenue growth, bolstering confidence in its Blackwell and next-generation Rubin roadmaps.
This growth is of paramount importance as the company navigates the current global chip shortage, which is expected to persist until the end of the year. The shortage has already started impacting the video game industry, which heavily relies on NVIDIA’s GPUs. The company’s strong Q4 performance thus indicates its resilience and strategic prowess in managing supply chain constraints.
Investor Concerns Over AI Processor Market Bubble
Despite NVIDIA’s stellar earnings report, the company’s latest sales forecast has sparked concerns among investors, leading to a bearish response as highlighted by Dan Ives from Wedbush Securities. This reaction underscores the fear of a potential bubble in the AI processor market.
These concerns arise as investors perceive that the rapid growth in AI processor demand and their soaring prices might not be sustainable in the long run. However, it’s worth noting that NVIDIA continues to optimize its operations to address power constraints in AI compute scaling, demonstrating its commitment to sustaining growth and profitability.
NVIDIA’s Current Market Performance
As of now, NVDA is priced at $185.18, reflecting a 5.34% decrease. Despite the recent dip, the stock has seen a 52-week range between $86.62 and $212.19. With a market capitalization of approximately $4.51 trillion, NVIDIA stands as a significant player in the technology and semiconductor industry.
The trading volume stands at 293.19 million shares, indicating active investor interest despite recent fluctuations. This level of trading activity shows that investors are keenly observing the company’s performance and are ready to make moves based on its market behavior.
Conclusion
In conclusion, while NVIDIA faces several challenges, including a global gaming chip shortage and potential bubble in the AI processor market, the company’s strong Q4 performance and operational optimizations show promise. The bullish price target set by RBC Capital further strengthens the case for NVIDIA, hinting at a potential upside that may reward patient investors. However, as always, investors should conduct their due diligence, considering both the potential risks and rewards associated with the stock.