Nvidia (NVDA +0.87%) has traded sideways for the last six months despite strong financial results and encouraging spending projections from hyperscalers like Alphabet, Amazon, Meta Platforms, and Microsoft.

What’s keeping the stock down? Investors are worried that artificial intelligence (AI) spending is unsustainable. Additionally, the Iran conflict has pushed oil prices to a multiyear high, making interest rate cuts less likely. Investors tend to rotate away from growth stocks when borrowing costs are high.

Nevertheless, Wall Street thinks Nvidia is deeply undervalued. Among 70 analysts, the stock has a median target price of $265 per share, according to The Wall Street Journal. That implies 50% upside from the current share price of…