One Wall Street firm thinks Nvidia stock is headed for $150. Is it a buy around 127?

No artificial intelligence (AI) stock is hotter and more influential than Nvidia (NVDA -2.25%) right now. The company’s stock price has risen 155% during trading since 2024, and the company continues to have a huge impact on valuation trends in the AI ​​space and the market at large.

In a note published last Friday, Evercore ISI maintained a buy rating on Nvidia stock and raised its price target to $150 per share from $145 per share. Based on the stock price of about $127 per share as I write this, the new price target suggests upside potential of about 18%. Should investors take the company’s advice and buy Nvidia stock right now?

Nvidia’s growth prospects remain very promising

Citing strong demand from hyperscale cloud customers, incl Microsoft and Meta platformsEvercore believes Nvidia is poised to continue delivering strong performance. The company’s graphics processing units (GPUs) have become the core hardware for advanced AI training and inference applications, and the company’s analysts anticipate that the AI ​​hardware leader will continue to benefit from demand trends in the second half of the year.

While some investors and analysts have wondered if demand for AI-related hardware could be on the way to plateau and decline in the not-too-distant future, there are signs that Nvidia is on its way to proving that the doubters are wrong. In addition to strong demand from hyperscalers, the company is likely in the early stages of seeing purchases from government customers increase. The company also has some positive hardware catalysts on the horizon.

With the upcoming release of the next generation of Blackwell processors, Nvidia is poised to introduce a new major sales driver. The first Blackwell processors are expected to offer major improvements in performance and power consumption compared to the H200 processors, which are currently best-in-class for AI and other accelerated computing applications.

Nvidia stock may see some volatile swings around earnings news, geopolitical developments and general macroeconomic trends, but the stock continues to look like a worthwhile buy for long-term investors.