Nvidia (NASDAQ:NVDA) will return to the earnings stage next Wednesday, when the AI giant reports results for its fiscal first quarter (April quarter). With Nvidia continuing to serve as the backbone of the global AI infrastructure buildout, the report is widely expected to serve as another major test for the broader AI trade, particularly as investors continue debating whether hyperscaler spending, GPU demand, and AI monetization trends can remain strong enough to justify the sector’s enormous rally.
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Explore NVDS for 2X short leverage on NVDARBC analyst Srini Pajjuri, who ranks among the top 2% of analysts tracked by TipRanks, believes the upcoming print should largely reinforce the same trends investors have seen over recent quarters – robust demand, another likely beat, and guidance that could once again move higher.
Pajjuri expects Nvidia to generate roughly $78 billion in revenue alongside adjusted EPS of $1.74 for the April quarter, broadly in line with Wall Street expectations. However, given Nvidia has exceeded consensus revenue estimates by roughly 3% on average over the past three quarters, the analyst believes another upside surprise remains likely.
The bigger focus, however, will likely center on guidance and commentary surrounding Blackwell deployments, hyperscaler spending plans, and Nvidia’s growing AI backlog. Pajjuri expects the company’s July quarter revenue outlook to arrive roughly 4%–5% above current consensus estimates, while gross margins should remain in the mid-70% range despite continued pressure from elevated memory pricing. According to the analyst, Nvidia has likely already secured most of its HBM supply needs for the year and should retain enough pricing power to offset additional component cost increases.
Recent Asia supply chain checks also continue pointing toward strong demand. Pajjuri estimates Nvidia is currently shipping roughly 1 gigawatt of compute capacity per month, while industry planning now points toward approximately 50,000–60,000 Blackwell rack shipments in 2026, compared to roughly 25,000–30,000 expected this year. Rubin systems also appear to be tracking toward a volume ramp later this year, potentially allowing Nvidia to begin recognizing initial Rubin-related revenue as early as the fiscal third quarter.
Meanwhile, Nvidia’s already massive AI backlog may have grown even larger. As of GTC in March 2026, the company reportedly held more than $1 trillion worth of Blackwell and Rubin backlog spanning 2025 through 2027, excluding Vera CPU racks, Groq LPX, and Rubin Ultra programs. Pajjuri believes Nvidia has continued adding to that backlog since then, although it remains unclear whether management will provide investors with a quantitative update during the earnings call.
“Looking ahead, AI monetization trends are improving, scaling laws are not slowing, and LLM leadership battle is far from settled,” Pajjuri said. “As such, we expect hyperscaler capex to remain healthy through 2027 and are not overly concerned about competition.”
At the same time, Pajjuri argues Nvidia’s valuation still remains reasonable relative to its growth profile. Despite the stock’s enormous rally over the past three years, the shares currently trade at roughly 21x CY27 earnings estimates, representing a discount relative to both semiconductor peers and the broader Mag 7 group.
Overall, the analyst assigns NVDA an Outperform (i.e., Buy) rating, alongside a $250 price target, implying ~6% upside from current levels. (To watch Pajjuri’s track record, click here)
The Street’s average price target is actually higher, and at $279.28, factors in a one-year gain of 18.5%. On the rating front, based on a mix of 40 Buys vs. 1 Hold and Sell, each, the stock claims a Strong Buy consensus view. (See NVDA stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.