Wells Fargo just handed Nvidia one of the more bullish calls on Wall Street. The bank raised its price target on the chipmaker from $265 to $315 on May 12, maintaining an overweight rating that implies roughly 44% upside from the stock’s closing price the day before.
The thesis is straightforward: AI spending isn’t slowing down, and Nvidia sits at the center of nearly all of it. Wells Fargo’s analysts see an AI infrastructure pipeline that could exceed $1 trillion by 2027, a number large enough to support Nvidia’s earnings power for years to come.
The math behind $315
The new price target is based on a 21x multiple applied to Wells Fargo’s calendar year 2028 earnings per share estimate of $14.85. The bank thinks Nvidia will be making nearly $15 per share in profit by 2028, and believes the market should be willing to pay 21 times that figure for each share today.
Nvidia currently trades at less than 20x on what Wells Fargo considers durable 2027 consensus estimates. Over the last three years, Nvidia’s median next-twelve-months price-to-earnings ratio has hovered around 32x.
The bank’s argument is essentially that Wall Street is underpricing the durability of AI demand, treating Nvidia’s AI-driven revenue as cyclical. Wells Fargo thinks that’s wrong.
Blackwell chips and what comes next
The analysts expect continued strong demand for Blackwell AI chips heading into the second quarter of fiscal year 2027. Beyond Blackwell, the report also references the upcoming Vera architecture launch.
The timing of this call is notable. It arrives ahead of Nvidia’s upcoming earnings report, a moment that tends to either validate or deflate the AI narrative every quarter.
The trillion-dollar pipeline
When Wells Fargo projects that the AI pipeline could surpass $1 trillion by 2027, they’re talking about the total capital expenditure that hyperscalers, enterprises, and sovereign entities are expected to pour into AI data centers, networking equipment, and the GPUs that power them.
Major cloud providers like Microsoft, Google, Amazon, and Meta have all signaled massive increases in their AI-related capital expenditure plans, and Nvidia has been the most direct beneficiary of that spending wave.
For investors watching the AI trade, the Wells Fargo call crystallizes the central debate. If you believe AI infrastructure spending grows to $1 trillion and beyond, and that Nvidia maintains its dominant position in the GPU supply chain, then a stock trading below 20x 2027 earnings looks like a bargain.