The wait is almost over for this blockbuster video game. I see 35% upside in the stock

Your favorite tech contrarian is back … and today’s stock pick is a little outside my usual territory. I typically focus on AI infrastructure companies, but right now I see a compelling opportunity in Take-Two Interactive Software, one of the world’s largest video game publishers. The New York-based company is behind blockbuster franchises including Grand Theft Auto, NBA 2K and Red Dead Redemption. Its biggest hit, Grand Theft Auto V, has sold more than 230 million copies worldwide, making it one of the best-selling video games of all time. Key points The long-awaited release of Grand Theft Auto VI could drive a major jump in sales and earnings. Wall Street is underestimating how many copies of the game Take-Two could sell. Shares trade at a discount to the industry’s historical valuation despite a major growth catalyst on the horizon. The big catalyst for Take-Two is just around the corner: Grand Theft Auto VI is scheduled for release on Nov. 19 . It’s been 13 years since the last installment, and several delays have only added to the anticipation. I believe investors are underestimating just how much demand there is for this game, and I see significant upside for the stock over the next couple of years. Grand Theft Auto VI Management has forecast sales of approximately 30 million copies of Grand Theft Auto VI in its first year. We’re modeling 37 million, and I think sales could go even higher. Part of the opportunity comes down to management’s traditionally conservative approach to guidance. Take-Two tends to set expectations it believes it can meet or exceed, rather than make overly ambitious promises. That caution has contributed to Wall Street underestimating the game’s sales potential. Earnings growth could accelerate sharply The company generated approximately $6.7 billion in revenue in fiscal 2026 , which ended March 31. Revenue is expected to rise to roughly $8.5 billion in fiscal 2027, an increase of about 27%. But the real payoff could come the following year. Earnings per share are projected to jump from $6.97 in fiscal 2027 to $10.32 in fiscal 2028. That’s an increase of nearly 50%. As Grand Theft Auto VI sales build, Take-Two could see a substantial improvement in profitability. If demand exceeds expectations, as I believe it will, earnings could climb even higher. The stock looks undervalued Despite the excitement surrounding Grand Theft Auto VI, Take-Two isn’t trading at the premium valuation you might expect. TTWO YTD mountain Take-Two Interactive Software, Inc., YTD Shares trade at approximately 21 times projected fiscal 2028 adjusted earnings. That leaves room for the stock to climb if Grand Theft Auto VI delivers the growth we’re anticipating. I still see an opportunity here. Investors are getting exposure to one of the biggest potential video game launches in history, and I believe the market has yet to fully appreciate the earnings growth it could generate. Why now? With shares recently trading around $212 our two-year price target of $293 implies approximately 35%-40% upside. This is an attractive opportunity to buy the stock before the full impact of Grand Theft Auto VI becomes clear. Bottom line The biggest risk is that Grand Theft Auto VI doesn’t live up to expectations. Another delay or disappointing sales could hurt Take-Two’s earnings outlook and put pressure on the stock. As I said, Take-Two is a different kind of play for me, but sometimes the best opportunities are outside your typical investing playbook. With a blockbuster launch approaching and shares trading at a discount, I see a path toward our $293 price target over the next two years. Paul Meeks is the Managing Director and Head of Technology Research of Freedom Capital Markets . Disclosures: Meeks does not own shares personally or through the firm. 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