Nvidia analyst reaction: Street loves Jensen Huang’s new $200 billion opportunity
Analysts are largely bullish on Nvidia as it set its sights on dominating the multibillion-dollar central processing unit market — urging clients to take advantage of the semiconductor stock’s post-earnings dip. The chipmaker reported $81.62 billion in revenue for the first fiscal quarter of 2027 , blowing past the $78.86 billion expected by analysts polled by LSEG. It also posted adjusted earnings of $1.87 per share versus the $1.76 per share expected by the Street. The company’s blockbuster financial results were fueled by its Grace Blackwell rack-scale system’s booming sales. However, the company’s push into CPUs, or a hardware component for data processing, should drive even more explosive growth in subsequent quarters, according to executives. Nvidia CEO Jensen Huang called the firm’s recent roll out of its Vera CPU a “major new growth driver” that presents up to a $200 billion revenue opportunity for the semiconductor firm. “The world is rebuilding computing for agentic AI and robotic physical AI,” Huang said in closing. “Nvidia sits at the center of these transitions.” Rolled out earlier this week, Vera CPU aims to deliver the highest performance and energy efficiency for data processing, per Nvidia . The firm has visibility into $20 billion in standalone Vera CPU revenue for fiscal year 2027, Huang said. CFO Colette Kress also said the Vera CPU “opens a brand new $200 billion tab for Nvidia.” The chip will be used by customers such as Anthropic, OpenAI and Oracle to power and scale their agentic AI initiatives. It will also form part of Nvidia’s AI supercomputing platform Vera Rubin, which is expected to debut later this year and deliver 10 times more performance per watt than its predecessor Grace Blackwell. Nvidia has been the clear winner since AI emerged in late 2022, with graphic processing units driving the company’s profits and sales. Of late, however, stocks such as AMD have outperformed as the rise of agentic AI shifts drives demand for CPUs. In the second quarter, AMD has more than doubled while Nvidia is up just 25%. Despite several promising updates, Nvidia stock fell 0.8% following the earnings report. Many analysts say investors should look past the chart. “We ignore this noise and focus instead on … [Nvidia’s] emerging leadership in agentic CPU of $200 billion [total addressable market] … with $20 billion of [second half of the current fiscal year] demand,” Bank of America analyst Vivek Arya said Wednesday in a note to clients. The analyst has a buy rating on Nvidia. His $350 price target, up from $320, implies roughly 57% upside from Wednesday’s close. Here’s what other shops on the Street are saying about Nvidia, including its play to gain ground in the CPU market. Citi: Buy, $300 Analyst Atif Malik’s price target on shares is 34% above Nvidia’s Wednesday closing price. “Management expects Rubin to be a cornerstone in AI inference and discussed the chip if combined with Blackwell exceeding what was included in the $500B revenue opportunity NVDA shared last year as the company has inventory and supply commitments in place to address future demand, including shipments extending into calendar 2027. NVDA expects every single one of their customers to eventually deploy Vera Rubin,” JPMorgan: Overweight, $280 JPMorgan analyst Harlan Sur’s target, up from $265, equates to 25% upside from Wednesday’s close. “Vera CPU opens up [a] new [total addressable market]…the $1T+ Blackwell + Rubin revenue framework underwrites strong visibility into [the current year] even before considering Vera CPU, [NVIDIA Groq 3 LPX], or other ecosystem optionality.” Morgan Stanley: Overweight, $288 Analyst Joseph Moore’s target, up slightly from $285, corresponds to upside of nearly 29%. “NVIDIA posted numbers higher than our estimates and our preview, with a clean beat and raise on all metrics, with a significant Vera Rubin ramp ahead that should prove out their contention that NVDA hardware leads in AI factory economics…claims of revenue leadership in [the current year] server CPUs reverberates through the suddenly overcrowded server CPU trade.” Goldman Sachs: Buy, $285 James Schneider’s price target, which was raised from $250, points to about 28% upside from Wednesday’s close. “We see a clearer path for the stock to outperform the market over the coming months…regarding CPUs, management believes that it has line of sight into delivering at least $20bn of standalone CPU revenue this year. We believe this is a strong initial ramp for Nvidia’s CPU-only products, and also points to structurally higher CPU demand as agentic AI continues to proliferate.” Wells Fargo: Overweight, $315 Aaron Rakers’ price target on shares translates to upside of roughly 41% from Wednesday’s close. “A notable incremental tonight was NVDA’s lean into CPU-only as representing a $200B+ addressable [total addressable market] in which the company now notes line-of-sight to $20B in total CPU revenue in FY27. NVDA is emphasizing Vera per-core performance advantages.” Deutsche Bank: Hold, $255 Ross Seymore’s price target on shares, up from $220, corresponds to upside of around 14% from Wednesday’s close. “Going forward, the company believes that they can actually outgrow hyperscaler capex, which has largely been seen as a limiting factor for NVDA’s future aspirations (and acted as a headwind on the stock’s valuation), with Jensen citing trillions of dollars per year (and growing) of AI-related demand upon which he believes NVDA can capitalize via selling traditional products (GPUs/Networking etc.) to Hyperscalers as well as AI Clouds, Industrial & Enterprise customers (faster growing over time). NVDA expects its growth to be further bolstered via selling stand-alone CPUs (Vera) to that rapidly expanding market (agentic AI demand), citing a TAM of $200b and expectations for ~$20b in revenues this year alone (for scale perspective we note that this target would be roughly equal to the individual server CPU revenues at either AMD or INTC).”
