Nvidia's Growth Prospects Soar as Supply Constraints Loom

Nvidia's growth prospects are looking strong, with management forecasting revenue to grow approximately 70% in fiscal 2028. This growth is limited by supply constraints, but analysts still see significant upside potential for the stock.

The company's data center revenue has more than doubled year-over-year, and its GPUs and CPUs are in high demand due to their use in AI data centers. Vera Rubin estimates that NVIDIA's revenue opportunity could reach $40 billion per gigawatt, up 60% from Blackwell's estimate.

Analysts have set an average price target of $328 for Nvidia, implying a 42% upside potential. The stock has already beaten the S&P 500 year-to-date, with a gain of 24.08%. However, supply constraints and potential fluctuations in AI spending could impact the company's growth prospects.

Nvidia's management has highlighted several factors that could drive its growth over the next two years, including the Vera Rubin ramp and recurring revenue-sharing deals with neoclouds. Additionally, the company's $99 billion repurchase authorization remains, which could also support the stock price.