The Nvidia stock price target is back in the headlines, and this time it’s a $420 call from Melius Research, one of the more bullish Nvidia price target 2026 estimates on Wall Street right now. The number arrived just after Nvidia confirmed a $3.5 billion Nvidia MediaTek investment, and it’s also landed while plenty of investors are still asking if Nvidia is even the best stock to hold going into next year. Between the two stories, the broader Nvidia stock forecast has gotten a fairly noticeable lift, and the Nvidia stock price target conversation is shifting fast.
Also Read: Nvidia vs. Micron: One AI Trade Is Getting Far More Expensive
Nvidia Stock Forecast And $420 Target After MediaTek Investment
NVDA MediaTek Investment Deepens AI Partnership
Nvidia is putting $3.5 billion into MediaTek’s convertible bonds, and the two companies are calling it their largest direct investment outside the US so far. The expanded deal touches AI data centers, PC chips under the RTX Spark and DGX Spark lines, and even automotive platforms, with MediaTek now adopting Nvidia’s NVLink Fusion so its own custom chips can plug straight into Nvidia’s rack scale systems. At the time of writing, analysts are mostly reading the Nvidia MediaTek investment as a way for Nvidia to stay at the center of AI infrastructure even as some of its biggest customers keep designing more of their own silicon.
Jensen Huang, founder and CEO of Nvidia, said:
“AI is transforming every computing platform, from the world’s largest AI factories to the PC and the car. MediaTek is one of the world’s great semiconductor companies, with exceptional expertise in system-on-chip design, connectivity, leading performance and power efficiency. Together, we’re building platforms that bring NVIDIA accelerated computing to new markets and give customers the freedom to create differentiated AI systems at enormous scale.”
Rick Tsai, vice chairman and CEO of MediaTek, said:
“MediaTek and NVIDIA share a vision for making advanced AI computing pervasive across the technology landscape. NVIDIA’s investment strengthens a collaboration that spans cloud AI infrastructure, local AI computing and automotive in the era of physical AI.”
Melius Raises Nvidia Price Target To $420
Melius Research analyst Ben Reitzes raised the Nvidia price target to $420 from $400 and kept the Buy rating in place, and that alone was enough to pull the average Nvidia stock price target higher across Wall Street. The firm leaned on Nvidia’s own guidance for revenue growth above 70% next year, even though gross margin is coming down a bit from where it used to sit. Purchase commitments also jumped, climbing to $279 billion from $119 billion, with total commitments now at $366 billion and memory needs driving most of that.
Nvidia also plans to hand back more than 60% of free cash flow to shareholders as buybacks keep growing. The $420 figure itself came from a fiscal 2029 earnings per share estimate of $21.11 at a 20 times multiple, a math that’s already showing up in several other Nvidia price target 2026 forecasts, and it’s part of why this particular Nvidia stock price target got so much attention.
Talking through the MediaTek deal on Bloomberg Television, Huang said:
“We’ve already had a big partnership with MediaTek. Today, we are going to make it a lot bigger.”
A reporter pressed Huang on whether the growing web of investments between chipmakers and their customers was turning circular, and Huang said:
“This is not circular because obviously they do their own business and we do our own business, and MediaTek is already incredibly profitable, incredibly successful.”
Nvidia Stock Price Target 2026 And Current Market Position
NVDA is trading around $217 to $220 a share right now, which puts Nvidia’s market cap near $5.24 trillion, and the average Wall Street Nvidia stock price target sits closer to $323, still well under the new Melius call and under most Nvidia price target 2026 estimates now on the table. Demand for accelerated computing keeps running ahead of what Nvidia can actually manufacture, and the next generation Vera Rubin platform is already up and running with a few major cloud partners. Amazon recently widened its own deal with Nvidia too, agreeing to deploy an additional 2 million Nvidia components next to the chips it builds in house.
Also Read: Nvidia Has Bad News For AMD And Intel: Find Out Here
Whether NVDA holds onto its reputation as the best stock in AI hardware, and stays a name analysts keep calling the Nvidia best stock for the AI cycle, probably comes down to something fairly simple, an integrated stack of GPUs, networking, and CUDA software that rivals still haven’t managed to copy. Add in the expanding Nvidia MediaTek investment and it’s easy to see why the latest Nvidia stock forecast, and the $420 Nvidia stock price target that’s driving it, is getting so much attention as 2027 gets closer.