Analysts project Nvidia’s stock to rebound sharply this month as data center spending nears $1 trillion in 2027.
Nvidia shares have trailed the S&P 500 technology sector by 12 percentage points in 2026, rising just 13% against the sector’s 25% gain. The underperformance comes despite the company’s 85% year-over-year revenue growth in its latest quarter, driven by soaring demand for AI-capable GPUs.
Data center build-out rates are accelerating, with AI hyperscaler capital expenditures projected to reach $1 trillion next year. Nvidia’s leadership in high-performance computing positions it to capture a significant share of this spending, potentially extending its rapid growth trajectory.
Valuations remain attractive relative to peers, and market sentiment may shift in June as investors refocus on fundamentals. The stock’s risk-reward profile is viewed as favorable amid expectations of a sector catch-up.