Analysts at Melius See Nvidia's (NVDA) Growth Concerns as "Overblown," Maintain Buy Rating

NVIDIA Corporation (NASDAQ:NVDA) is one of the AI Stocks Shaping Wall Street’s Next Big Rally. On October 6, Melius Research raised its price target on the stock to $275 from $240 while maintaining a Buy rating.

The firm is of the view that Nvidia holds the potential to easily command 40% of the total AI infrastructure market by 2030. It noted how Nvidia is demonstrating strengthening momentum despite not having sales to China. It has dismissed  concerns about potential growth deceleration, citing them as “overblown.”

Melius Research also believes that Nvidia’s sales to China will eventually return, highlighting how current Wall Street estimates for calendar years 2026 through 2028 seem too conservative regardless of the China situation.

It also raised its calendar year 2027 growth estimate for the company’s data center revenues to 30% from a previous projection of 22%. This reflects potential for further upside through the end of the decade.

Burgeoning demand for the company’s graphics processing units (GPUs) has been driving its revenue growth in recent quarters. Overall, the firm believes that Nvidia’s AI leadership, expanding partnerships, and sustained infrastructure demand will fuel significant growth.

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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