Prediction: This Will Be Nvidia’s Stock Price By the End of 2027

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Nvidia has been in the news for the wrong reason lately, but investors shouldn't overlook the company's strong prospects and cheap valuation.

Nvidia (NASDAQ:NVDA) stock has been quite volatile this year. The stock dropped in the first quarter of the year before rallying over the next couple of months. However, Nvidia stock has been on a roller coaster ride over the past six months, and its year-to-date performance is in the red.

This isn't befitting of a company that's growing at an incredible pace and believes that it can sustain its impressive momentum in 2027. Additionally, the negative publicity that Nvidia has received following CEO Jensen Huang's email to employees earlier this week has further crushed the stock.

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However, I will look past the noise and examine Nvidia's prospects for 2027 in this article to check how much upside the semiconductor giant could deliver by the end of next year.

The primary reason behind Nvidia's underperformance this year is the overall negativity surrounding the state of the artificial intelligence (AI) build-out. Though the company's financial performance has been solid, investors are worried about whether the same could continue owing to higher interest rates that will increase the cost of borrowing for hyperscalers and AI companies.

However, the situation on the ground seems quite different. Investment bank UBS recently increased its AI capital expenditure estimates for 2026 and 2027. The firm expects $1 trillion in spending this year, followed by a 40% increase to $1.4 trillion next year. It is easy to see why that's the case. Bloomberg Intelligence notes that the combined backlog of Microsoft, Oracle, Alphabet, and Amazon stands at a whopping $2.35 trillion.

Meanwhile, neocloud infrastructure providers also have sizable backlogs. So, these companies will spend more on building data center…

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