Nvidia Analysts See New Growth Drivers Ahead of Earnings
Nvidia's stock price remained flat on Thursday morning as Wall Street analysts pointed to new growth drivers ahead of the company's upcoming earnings report. RBC Capital analyst Srini Pajjuri kept an 'Outperform' rating and a $300 price target on Nvidia, citing continued demand from the generative AI buildout, strong access to supply, and the early ramp of its Rubin platform.
The Rubin platform is expected to carry an average selling price premium of 50% or more compared with prior generations. Additionally, Pajjuri flagged roughly $10 billion in incremental standalone CPU opportunity in the second half of the year. Oppenheimer analyst Rick Schafer also sees upside to both Nvidia's second-quarter results and its third-quarter outlook, with Blackwell Ultra expected to drive the momentum.
The analysts pointed to the ramp of Nvidia's next-generation VR200 platform in the current quarter as a potential growth driver through the second half of the year. Oppenheimer estimated that Nvidia's CPU business could reach $20 billion in 2026, putting it on a similar scale to the current x86 CPU market.