Nvidia: Underappreciated Data Center Upside and Expanding AI Optionality Support Buy Rating

J.P. Morgan analyst Harlan Sur has maintained their bullish stance on NVDA stock, giving a Buy rating today.

Harlan Sur has given his Buy rating due to a combination of factors tied to Nvidia’s sustained demand visibility and expanding growth drivers. Nvidia’s management is already planning capacity with customers out to calendar 2027, underscoring a demand pipeline they describe as exceptionally strong, with customers even seeking to augment existing 2026 orders despite an already substantial backlog. That backlog, originally disclosed as exceeding $500 billion through the end of 2026 for Blackwell, Rubin, and related networking products, has seen incremental upside from new customer agreements, suggesting data center revenue potential remains underappreciated by the market. In addition, the company expresses high confidence in its supply chain’s ability to support the upcoming product ramps and the transition to the Rubin platform, reducing execution risk around these large-scale deployments.

Harlan Sur also highlights several important optionality and mix drivers that further support a constructive stance on the stock. Nvidia is increasingly positioned to benefit from “physical AI” use cases across multiple industries, beyond its already solid automotive pipeline, giving the company a credible pathway into a large, emerging TAM where it is competitively well situated across the stack. The firm’s networking business continues to gain traction, with attach rates now at roughly 90% of compute deployments, reinforcing the potential for networking to grow in line with compute and deepen Nvidia’s platform economics. While export license uncertainty persists around high-end GPUs for China, any eventual shipments would be incremental to current expectations and open a sizable additional market. Finally, the Groq licensing deal points to future product opportunities in ultra–low-latency inference, adding another layer of long-term growth optionality that supports maintaining a Buy recommendation.

In another report released today, Citi also maintained a Buy rating on the stock with a $270.00 price target.

Based on the recent corporate insider activity of 133 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NVDA in relation to earlier this year.