Next Wednesday, all eyes will be on Nvidia (NASDAQ:NVDA) when the chip giant reports fiscal first quarter (April quarter) earnings. The Jensen Huang-led firm remains the world’s most valuable company with a market cap exceeding $5.5 trillion, while the stock has gained another 75% over the past year.
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High conviction NVDA bears now have this Tradr ETFEven after that run, some on Wall Street believe Nvidia’s upside story is far from exhausted. That includes Christopher Rolland, a Susquehanna analyst ranked among the top 1% on Wall Street, who argues Nvidia still has “one of the largest opportunity sets ahead” and sees a compelling case that the stock remains undervalued heading into earnings.
Accordingly, Rolland has raised his price target on NVDA from $250 to $275, suggesting the stock will gain 21% over the next year. (To watch Rolland’s track record, click here)
Obviously, the main focal point of the earnings report will be the Data Center segment, which makes up around 90% of revenue, and where AI demand continues to be underpinned by continuously rising hyperscaler CapEx plans. The top five hyperscalers are now projected to almost double CapEx in 2026, compared with prior Street expectations of 62% year-over-year growth.
Meanwhile, at GTC, CEO Huang updated the company’s outlook to more than $1 trillion in combined Blackwell and Rubin revenue through calendar year 2027, up from around $500 billion for 2025 and 2026. Moreover, Nvidia is indicating potential further upside, as this target does not account for new platforms such as the Groq LPX rack, Vera CPU rack, storage rack, and others.
As a result, Rolland has raised his DC estimates and now models approximately $1 trillion in Blackwell/Rubin revenue through CY2027, compared with his prior estimate of $940 billion. Rolland notes that Street estimates are calling for ~$995 billion in total DC revenue for 2025 through 2027, although this includes Hopper revenue, suggesting additional upside potential through 2027.
As for the roadmap, Rubin is still on course for a second-half 2026 launch, with the first customer samples shipped in late February.
Regarding China, Huang recently indicated that export restrictions have effectively reduced Nvidia’s market share there to “zero percent,” and therefore Rolland still leaves out any revenue contribution from the region in his model. However, that assumption could eventually prove too conservative, as Huang’s surprise decision to join President Trump’s high-profile China trip this week has fueled speculation that U.S.-China semiconductor restrictions could eventually ease, potentially reopening part of the Chinese AI market to Nvidia.
In other areas, Sovereign AI revenue reached roughly $30 billion in FY26, exceeding the prior target of more than $20 billion. Moving forward, the company expects this segment to grow “at least in line with its AI opportunity.”
Meanwhile, DC Networking posted an exceptional fourth quarter, supported by strong demand across NVLink, InfiniBand, and Ethernet, as well as a high attach rate to NVL72. Here, Rolland anticipates additional growth as the broader GB300 full networking ecosystem “continues to ramp.”
Beyond revenue, the 5-star analyst expects gross margins for April to come in broadly in line with consensus. While management is actively aiming to sustain gross margins in the mid-70% range for the year, Rolland does see potential pressure emerging in the second half as the initial Rubin rollout begins.
So, that’s the Susquehanna view, but what does the rest of the Street make of Nvidia’s prospects? With a lopsided 40 Buys vs. 1 Hold and Sell, each, the stock naturally claims a Strong Buy consensus rating. The $277.23 average price target closely resembles Rolland’s objective and factors in a one-year gain of 22%. (See NVDA stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.