Nvidia’s (NASDAQ:NVDA) AI momentum is gaining fresh traction as surging global demand, a rebound in China sales, and accelerating data center investments position the chipmaker for another strong earnings season.
Nvidia isn’t just growing, it’s a profit machine. Investors paying 40x forward earnings know exactly what they’re getting: a dominant player in AI with unmatched pricing power, scale, and ecosystem control.
Ahead of the company’s August 27 earnings report, analysts at UBS and Wedbush expressed confidence in its AI-driven growth. They cited a powerful combination of surging AI infrastructure spending and renewed traction in key markets.
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UBS analyst Timothy Arcuri reaffirmed a Buy rating with a $205 price target, pointing to robust tailwinds supporting Nvidia’s long-term growth. Wedbush’s Matt Bryson went further, lifting his price target from $175 to $210 and reiterating an Outperform rating.
Bryson also raised his revenue and earnings forecasts, underscoring stronger-than-expected demand trends, a recovery in China beginning in the fiscal third quarter, and expanding hyperscale and neocloud spending through 2026.
Bryson emphasized that hyperscale capital expenditures rose 67% year over year in the second quarter, evidence that AI buildouts are accelerating and disproportionately benefiting Nvidia, which commands a dominant share of AI server value.
He noted that neocloud operators and AI model builders are set to sustain data center investments well into 2025, with further tailwinds expected in late 2025 and 2026 as long-term infrastructure projects come online.
On the product side, Bryson pointed to robust demand for Nvidia’s B200 and GB200 GPUs, with supply occasionally unable to keep pace.
He highlighted growing expectations for NVL72 rack shipments in the second half of 2025, supported by bullish commentary from manufacturing partner Foxconn.
In China, server builds have rebounded sharply following U.S. licensing approvals for Nvidia’s H20 chips, though policymakers in Beijing are simultaneously pushing domestic alternatives.
Looking ahead, Bryson said GB300 server shipments remain on track for late third or early fourth quarter, while the transition to Blackwell Ultra chips is expected to proceed without major disruptions.
He also reaffirmed that early 2026 production of the Rubin architecture appears on schedule despite speculation of delays, underscoring confidence in Nvidia’s execution.
Based on these dynamics, Bryson lifted his fiscal 2027 EPS estimate to $6.10, arguing Nvidia’s valuation is supported by its role at the center of global AI infrastructure expansion, with major projects underway in Saudi Arabia, the UAE, Europe, and Asia.
Price Action: NVDA stock is trading lower by 0.03% to $175.37 at last check Thursday.
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