Numerous analytical studies for power augmentation systems can be found in the literature with the goal to improve the performance of wind turbines by increasing the energy density of the air at the rotor. All methods to date are only concerned with the effects of a diffuser as the power augmentation, and this work extends the semi-empirical shrouded wind turbine model introduced first by Foreman to incorporate a converging-diverging nozzle into the system. The analysis is based on assumptions and approximations of the conservation laws to calculate optimal power coefficients and power extraction, as well as augmentation ratios. It is revealed that the power enhancement is proportional to the mass stream rise produced by the nozzle diffuser-augmented wind turbine (NDAWT). Such mass flow rise can only be accomplished through two essential principles: the increase in the area ratios and/or by reducing the negative back pressure at the exit. The thrust coefficient for optimal power production of a conventional bare wind turbine is known to be 8/9, whereas the theoretical analysis of the NDAWT predicts an ideal thrust coefficient either lower or higher than 8/9 depending on the back pressure coefficient at which the shrouded turbine operates. Computed performance expectations demonstrate a good agreement with numerical and experimental results, and it is demonstrated that much larger power coefficients than for traditional wind turbines are achievable. Lastly, the developed model is very well suited for the preliminary design of a shrouded wind turbine where typically many trade-off studies need to be conducted inexpensively.