Nvidia Bull Remains Convicted: 'Hyperscaler Guarantee' Drives Demand

A financial writer shares their conviction in buying Nvidia (NASDAQ:NVDA | NVDA Price Prediction) stock, citing a 'Hyperscaler Guarantee' that drives demand for the company's products.

The guarantee comes from Amazon's (NASDAQ:AMZN) $220B 2026 capex plan and Microsoft's (NASDAQ:MSFT) 43% Azure growth on a $678B backlog. Alphabet (NASDAQ:GOOGL) also raised full-year capex guidance to $195 billion to $205 billion.

Nvidia reported Q1 FY27 revenue of $81.61 billion, up 85.23% year over year, with non-GAAP EPS of $1.87 topping consensus by 5.42%. Data Center revenue hit $75.25 billion, up 92%, and Networking alone grew 199%.

The writer argues that owning Nvidia is more profitable than buying the customers, as the company earns a 75% gross margin compared to Microsoft's 67.9%, Alphabet's 59.7%, and Amazon's 50.3%. The writer also notes that China presents a risk, but management guided Q2 revenue to $91.0 billion despite excluding China Data Center compute entirely.