Nvidia (NVDA -5.74%) stock has been rather weak lately, as it has been the focus of a marketwide sell-off that particularly hurt any company with significant exposure to the artificial intelligence (AI) arms race. Nvidia is down over 20% from its all-time high, placing it in bear market territory. However, the average price target on Nvidia's stock remains far higher than its current price.

According to TipRanks, the average price target on Nvidia's stock among 42 analysts is $178.18, indicating a 54% upside. However, Rosenblatt analyst Hans Mosesmann has the highest price target, $220, indicating a 90% upside from current levels.

That would be a massive one-year move, but is it feasible? Let's take a look.

Nvidia's revenue growth has been remarkable

Nvidia's graphics processing units (GPUs) are powering the AI revolution. GPUs have an advantage over traditional CPUs because they can process multiple calculations in parallel. Furthermore, they can be combined in clusters to amplify that effect. This advantage, combined with Nvidia's best-in-class GPUs and infrastructure to support them, allowed the company to seize control over a very important sector.

This success translated into strong growth for Nvidia, which saw revenue and profits skyrocket since the AI arms race kicked off in 2023.

NVDA Revenue (TTM) data by YCharts

However, Nvidia isn't done growing yet. Many of Nvidia's largest clients (the tech giants that are purchasing truckloads of GPUs to power AI workloads) indicated that they are ramping up their AI spending in 2025. This is fantastic news for Nvidia, and the strong growth is likely to persist throughout 2025.

For Q1, management expects revenue of $43 billion, indicating 65% growth. While management didn't give FY 2026 guidance, Wall Street expects revenue of $204 billion, indicating 56% growth. That's monster growth, and it's occurring at a level that nobody has seen for a company of Nvidia's size.

This all plays into Mosesmann's $220 price target on Nvidia's stock, but is this projection realistic?

Nvidia's stock price and projections could support a $220 stock in the near future

To understand what a $220 stock price would indicate, let's examine historical valuation levels. Since 2024, Nvidia has traded for around 61 times trailing earnings, which is understandable for a company that's growing its revenue rapidly.

NVDA PE Ratio data by YCharts

However, with its 39.5 times trailing earnings price tag, the stock trades at a discount right now. If the stock reached $220 per share and returned to a 60 times trailing earnings valuation level (I'm not saying that valuation is justified), it would require earnings per share (EPS) of $3.67.

Over the past 12 months, Nvidia generated $2.97 in EPS, so that would only require 24% EPS growth to hit that mark. Considering that Nvidia's revenue is expected to grow by 56% this year and that the average Wall Street analyst projects Nvidia will generate $4.50 in EPS this year, the $220 price tag seems feasible.

However, the 60 times earnings valuation isn't sustainable. But a 40 times earnings valuation (Nvidia's current level) is, especially when you factor in the company's growth. For Nvidia to achieve a $220 stock price with a 40 times earnings price tag, it would require EPS of $5.50. That's a significant amount higher than the $4.50 expected, but the same analysts expect EPS of $5.72 in FY 2027.

So, will Nvidia's stock reach $220 over the next year? I'd say it will be tough, but it wouldn't surprise me. On the other hand, if you stretch your time horizon to two years, I think hitting $220 per share is easily attainable. This would result in a 90% return over two years, which is outstanding. With the stock price down rather significantly from its highs, I think right now represents an excellent opportunity to scoop up shares of one of the market's biggest winners, which still has plenty of room to run.