NVIDIA Rated Undervalued by Analysts – Price Target Up to $400

An analysis published on August 27, 2026 rates the stock of NVIDIA Corp. (NASDAQ: NVDA) as significantly undervalued. Despite substantial gains in the wake of the AI boom, analysts at SeekingAlpha see further upside potential and cite price targets between $300 and $400.

Valuation Significantly Below Fair Value

The analysis titled "The Coiled Spring Poised To Jump" argues that NVIDIA remains attractively valued despite its strong performance in recent months. Valuation metrics such as the price-to-earnings ratio (P/E) and price-to-earnings-growth ratio (PEG) are cited as support. A PEG ratio – the P/E divided by expected earnings growth rate – is considered attractive at values below 1.0.

The semiconductor manufacturer from Santa Clara has benefited for months from exploding demand for AI computing accelerators. The company's graphics processors are considered the standard for training and running large language models and other AI applications.

Demand Significantly Exceeds Supply

A central point of the analysis is the persistent imbalance between supply and demand. Demand for NVIDIA's AI chips continues to significantly exceed available supply, supporting pricing power and margin quality. Hyperscalers like Microsoft, Amazon and Google, as well as numerous other companies, are investing billions in building AI infrastructure.

At the same time, the analysis anticipates massive growth potential in the AI market. The company has secured a dominant market position through early investments in parallel computing architectures and its CUDA software platform, one that is difficult to challenge.

Market Environment and Competition

While NVIDIA was among the most discussed stocks in the S&P 500 and Dow Jones on August 27, 2026, competitor Marvell Technology made headlines with its quarterly results. Marvell reported revenue growth of 37 percent, driven by AI data center business. However, analysts valued the stock at a P/E of around 60, deeming it comparatively expensive relative to other chip stocks.

In direct comparison, NVIDIA analysts argue that the chip giant is valued more cheaply despite similar growth dynamics. The valuation gap between NVIDIA and smaller AI chip competitors has widened in recent weeks.

Assessment for Investors

This assessment is based on analyst opinion and does not constitute investment advice. Price targets are forecasts based on assumptions about future developments and may not materialize. NVIDIA is a volatile technology stock that has historically exhibited significant price fluctuations.

For private investors in the DACH region, the stock is tradable on NASDAQ in US dollars. Currency fluctuations between euro or Swiss franc and US dollar can affect returns. NVIDIA's next quarterly results are expected in November 2026 and should provide further insights into the development of the AI business.