Nvidia (NVDA 1.21%) stock currently trades around $175 per share. So, for it to hit $300 per share by the end of the year, it would require the stock to rise over 70%. That's an incredible one-year return, and it may seem far-fetched to some, but I think the numbers actually back up this projection.
I think Nvidia stock could hit $300 by the end of 2026, making it a clear buy if it does.
Image source: Getty Images.
The AI buildout is far from over
One of the best places to look for clues about how successful Nvidia will be is in artificial intelligence (AI) hyperscaler earnings announcements. The numbers to keep an eye on are capital expenditure projections, as most of these companies are spending ludicrous amounts of money on data centers. These data centers will be filled with graphics processing units (GPUs) from Nvidia (among other products), so if the hyperscalers are spending big on data centers, Nvidia will thrive.
Two hyperscalers have already reported 2025 earnings and have given investors guidance for 2026. Meta Platforms, the owner of social media platforms like Facebook and Instagram, spent $72.2 billion on capital expenditures during 2025. For 2026, the company expects to spend $115 billion to $135 billion. Alphabet also reported, and although it spent $91.45 billion in 2025, it plans to spend $175 billion to $185 billion in 2026.
That's a huge jump in spending, and Nvidia should be one of the primary beneficiaries of this trend.
But can its share price reach $300?
$300 per share isn't unrealistic
First, we need to set some valuation expectations. Currently, at Nvidia's growth rate, trading at a price-to-earnings ratio of 40 is reasonable. So, for Nvidia to reach a $300 per share stock price, it must produce at least $7.50 in earnings per share.
NASDAQ: NVDA
Key Data Points
Over the past 12 months, it has generated $4.04, but that also includes a quarter where Nvidia had to write down a significant chunk of its inventory due to exports to China being banned. That is going away, giving Nvidia a dual earnings boost heading into 2026. The average Wall Street analyst projects $7.66 in earnings per share for Nvidia during FY 2027 (ending January 2027), so this would be enough to send Nvidia's stock to $300 per share by the end of 2026.
This clearly means that Nvidia stock is a fantastic one to buy now, and I think it's one of the best buys in the market.
