Nvidia (NASDAQ:NVDA) investors had plenty to look forward to last Thursday. The AI chip leader delivered another blockbuster earnings report, which featured a customary beat-and-raise, record Data Center sales, while the company said that demand remains extremely robust.
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Initially, the shares pushed ahead following the print, but the report ultimately failed to quell Wall Street’s increasingly uneasy stance toward all things AI; fears of a bubble have gripped the market, and the shares turned red.
All the talk of a bubble had Nvidia’s top brass in a combative mood during the earnings call. Both CEO Jensen Huang and CFO Colette Kress pushed back hard against investor worries about a potential AI bubble. Huang didn’t sidestep the issue and brought it up right away in his prepared remarks, explaining why he thinks Nvidia is in a uniquely strong position to keep leading the AI market.
“There’s been a lot of talk about an AI bubble,” the CEO said on the matter. “From our vantage point, we see something very different. As a reminder, Nvidia is unlike any other accelerator. We excel at every phase of AI.”
That is obviously no idle boast, and one that Evercore analyst Mark Lipacis thinks is entirely fitting.
“Results were consistent with our channel checks which indicated that NVDA remains the AI ecosystem of choice, “Lipacis, who ranks among the top 1% of Street stock experts, went on to say.
Even with supply still tight, the analyst thinks the 32% quarter-over-quarter increase in inventory and the +63% sequential jump in supply commitments put Nvidia in a position to meet, or possibly exceed, its $500 billion target for data-center compute orders across 2025 and 2026. Lipacis also forecasts revenue growth rising from 56% in the July 2025 quarter to 79% in the July-2026 quarter, which the analyst believes will help “support a premium P/E ratio.”
Lipacis’ bottom-up estimates show Nvidia has recognized only $110 billion year-to-date (including the October quarter) from Blackwell and Rubin compute and networking revenues out of the $500 billion figure Huang cited at GTC in Washington, DC. That implies Nvidia should book at least another $390 billion of those compute and networking revenues from the original target over the next five quarters. Lipacis currently forecasts $493 billion in total 2025–2026 Blackwell and Rubin revenues (including networking), though he sees that number as conservative.
“We believe risk/reward remains attractive and NVDA remains our Top Pick,” the 5-star analyst summed up.
As such, Lipacis assigns NVDA an Outperform (i.e., Buy) rating and raised his price target from $261 to a new Street-high of $352, suggesting the stock will climb ~97% higher by this time next year. (To watch Lipacis’ track record, click here)
Elsewhere on Wall Street, expectations are more measured. The average price target stands at $257.33, pointing to a ~44% upside. Overall, NVDA holds a solid Strong Buy consensus rating, supported by 39 Buys against just one Hold and Sell, each. (See NVDA stock forecast)
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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.