Aletheia Capital just bumped its Nvidia price target to $270, up from $250, right before the company reports earnings. The reasoning: AI chip demand remains so strong that Nvidia should blow past consensus revenue estimates by $2B to $3B.

Analyst Stefan Chang is betting that the market is still underestimating how much money is pouring into AI infrastructure.

A crowded bullish trade keeps getting more crowded

TD Cowen recently raised its own target to $275, pointing to order pipelines that the firm believes exceed $1 trillion. Bank of America went even further, lifting its target to $320 based on an analysis of AI data center demand.

Nvidia’s stock has gained 36.41% since March 30, a run fueled almost entirely by AI-related capital expenditure announcements from the largest cloud providers and enterprise buyers.

The AI spending machine

Microsoft, Google, Amazon, Meta, and a growing list of sovereign wealth funds and nation-states are all competing for GPU allocation.

That’s the logic behind Chang’s $2B to $3B beat prediction. The previous $250 target already implied significant upside at the time it was set. Raising it to $270 suggests that even Aletheia’s own optimistic assumptions from earlier this year turned out to be too conservative.

What this means for investors

The spread between analyst targets also tells a story. Aletheia at $270, TD Cowen at $275, Bank of America at $320. That $50 gap between the lowest and highest targets reflects genuine uncertainty about just how far AI spending can go before the cycle matures.

For investors weighing an entry or addition here, the earnings report itself will be less about the backward-looking revenue number and more about forward guidance. What Nvidia says about Blackwell chip ramp timelines, gross margin trajectory, and customer ordering patterns for the back half of the year will determine whether the stock trades to $270, $320, or somewhere lower.

The 36.41% gain since late March has already pulled a lot of future returns into the present.