Nvidia draws bearish AI price target as correction looms by June 30

The Finbold AI Agent predicted Nvidia will suffer a steep correction by June 30, 2026, diverging from the consensus of 49 human analysts.

"Nvidia remains the key AI stock to own, with growth accelerating," Truist analyst William Stein said, maintaining his Buy rating and $287 price target. HSBC also kept its Buy rating, raising its target to $325 from $295 on strong hyperscaler spending. Bank of America maintained its Buy rating, noting Nvidia trades at a discount to other mega-cap growth stocks on forward earnings and free cash flow.

The AI-driven forecast comes as Nvidia trades at a forward P/E of 27.85, above the sector average of 24.94. The company reported Q1 FY2027 revenue of $81.6 billion, up 85% year-over-year, with EPS of $1.87. Management raised the quarterly dividend 2,400% to $0.25 per share and approved an $80 billion buyback. The payout ratio stands at just 8.56%, leaving room for further increases.

The AI model's bearish call pits algorithmic prediction against human analyst conviction. All 49 analysts covering Nvidia rate it a Strong Buy, with an average price target of $296.20, implying 37.6% upside from current levels. The stock has gained 15.46% year-to-date in 2026 after rising 62.11% over the past year.

The divergence highlights a growing tension between AI-generated forecasts and traditional equity research. Nvidia guided for $91 billion in Q2 revenue with gross margins around 75%, as management expects AI infrastructure demand to remain strong. CEO Jensen Huang has called the current buildout "the largest infrastructure expansion in human history."

The company has expanded its AI infrastructure through a partnership with IREN Limited to build up to 5 gigawatts of data center capacity. It is also working with Corning to boost U.S. production of optical connectivity used in AI systems, with plans to increase capacity 10 times and add more than 3,000 jobs. Nvidia has also pushed into quantum computing with its open-source Ising models, which can deliver up to 2.5 times faster performance in decoding tasks.

The AI forecast introduces a new variable for Nvidia holders accustomed to near-universal analyst support. Investors will watch whether the stock can hold above current levels through June 30, when the predicted correction window closes.

This article is for informational purposes only and does not constitute investment advice.